The genes transcribed by RNA polymerase III (Pol III) generally have intragenic promoter elements. One of them, the yeast U6 snRNA (SNR6) gene is activated in vitro by a positioned nucleosome between its intragenic box A and extragenic, downstream box B separated by ϳ200 bp. We demonstrate here that the in vivo chromatin structure of the gene region is characterized by the presence of an array of positioned nucleosomes, with only one of them in the 5 end of the gene having a regulatory role. A positioned nucleosome present between boxes A and B in vivo does not move when the gene is repressed due to nutritional deprivation. In contrast, the upstream nucleosome which covers the TATA box under repressed conditions is shifted ϳ50 bp further upstream by the ATP-dependent chromatin remodeler RSC upon activation. It is marked with the histone variant H2A.Z and H4K16 acetylation in active state. In the absence of H2A.Z, the chromatin structure of the gene does not change, suggesting that H2A.Z is not required for establishing the active chromatin structure. These results show that the chromatin structure directly participates in regulation of a Pol IIItranscribed gene under different states of its activity in vivo.In the budding yeast, ϳ300 genes transcribed by RNA polymerase III (Pol III) yield the short noncoding RNAs like tRNA, U6 snRNA, and 5S rRNA, for example (25). The basal transcription factor of Pol III, TFIIIC, binds to the two intragenic promoter elements, boxes A and B, and recruits the initiation factor TFIIIB 30 bp upstream of the transcription start site, which recruits Pol III in turn (18, 52). U6 snRNA is conserved from yeast to mammals and is transcribed by RNA Pol III (9). Unlike other Pol III-transcribed genes, box B in the U6 snRNA gene (SNR6) of Saccharomyces cerevisiae is found 120 bases downstream of the terminator (10), positioning it ϳ200 bp away from box A, in contrast to the optimal 50-to 60-bp separation of the two found in most tDNAs. The TATA box at the Ϫ30-bp position can drive the transcription in vitro on naked DNA templates, but box B and TFIIIC are required to relieve the chromatin-mediated repression of SNR6 (10,11,17), indicating that TFIIIC helps alter the chromatin structure in favor of TFIIIB binding.Active participation of chromatin in the transcription by Pol II is well documented (30). In contrast, little is known about the role of chromatin in regulation of Pol III-transcribed genes. This may be partly because of the prevailing notion that Pol III-transcribed genes are devoid of nucleosomes (37, 66). Recently, several genome-wide studies have reported association of chromatin modifying complexes with Pol III-transcribed genes. The chromatin remodeling complex of yeast, Isw2, localizes to a large number of tDNAs (20) while RSC is targeted to virtually all Pol III-transcribed genes (38). Histone chaperone Asf1 also localizes to many Pol III genes including SNR6 (53). Global nucleosome depletion activates transcription of some unusual Pol III genes that are not transcribed unde...