Bacteriophage T7 promoters contain a consensus sequence from ؊17 to ؉6 relative to the transcription start site, ؉1. In addition, the strong class III promoters are characterized by an extended ATrich region upstream of ؊17, which is often interrupted by one or more GC base pairs in the weaker class II promoters. Herein we studied the role of the AT-rich region upstream of ؊17 in transcription regulation of T7 RNA polymerase. Equilibrium DNA binding studies with promoter fragments of consensus sequence truncated at various positions between ؊17 and ؊27 showed that the polymerase-promoter complex is significantly stabilized as the upstream AT-rich sequence is extended to and beyond ؊22. Similarly, promoters in which the AT-rich region from ؊17 to ؊22 is interrupted by several GC base pairs showed weak binding. Kinetic studies indicated that the presence of extended AT-rich sequence slows the dissociation rate constant of the polymerase-promoter complex and slightly stimulates the association rate constant, thereby increasing the stability of the complex. Measurement of the transcription activity revealed that the extended AT-rich region does not affect the kinetics of abortive synthesis up to the formation of 8-nucleotide RNA but causes accumulation of longer abortive products between 9 and 13 nucleotides. The observed effects of the upstream DNA region were AT sequence-specific, and the results suggested a larger role for the extended AT-rich sequence that has been unappreciated previously. We propose that the AT-rich DNA sequence upstream of ؊17 plays a role in modulating the efficiency of transcription initiation by affecting both the affinity of T7 RNA polymerase for the promoter and the efficiency of promoter clearance.Bacteriophage T7 RNA polymerase (RNAP) 2 and T7 promoters constitute a model system for studying the protein-DNA interactions that occur during transcription as well as to understand the basic catalytic mechanism of DNA transcription. The 99-kDa single subunit enzyme of phage T7 shares many functional characteristics of transcription catalysis with multisubunit RNAPs despite lacking proteins structural similarities. T7 RNAP, without the assistance of accessory proteins, is capable of catalyzing all the fundamental transcription activities. The various crystal structures of T7 RNAP-promoter DNA complex provide deeper insights into the interactions that occur with the promoter as well as conformational changes in T7 RNAP that occur during promoter clearance (1-4). The structure of T7 RNAP bound to a minimal promoter fragment shows that the specific recognition of T7 promoter involves both base-specific and nonspecific contacts with the 13 conserved promoter base pairs from Ϫ17 to Ϫ5. These include upstream contacts in the major groove of the specificity region of the promoter (Ϫ11 to Ϫ5) and in the minor groove of the AT-rich region of the promoter (Ϫ17 to Ϫ13) (1, 2). The base pairs from Ϫ4 to ϳϩ2 that include the initiation site (ϩ1) are melted, and the single-stranded template DNA is plunged ...