DNA methyltransferase 1 (DNMT1) has been reported to interact with a wide variety of factors and to contain intrinsic transcriptional repressor activity. When a conservative point mutation was introduced at the key catalytic residue, mutant DNMT1 failed to rescue any of the phenotypes of Dnmt1-null embryonic stem (ES) cells, which indicated that the biological functions of DNMT1 are exerted through the methylation of DNA. ES cells that expressed the mutant protein did not survive differentiation. Intracisternal A-particle family retrotransposons were no longer methylated and were transcribed at high levels. The proper localization of DNMT1 depended on normal genomic methylation, and we discuss the implications of this finding for epigenetic dysregulation in cancer.Patterns of methylated and unmethylated cytosines at CpG dinucleotides are propagated with a fidelity of Ͼ99%, and their stable inheritance for Ͼ80 cell generations has been documented (48). DNA methylation is required for the transcriptional silencing of transposons, imprinted genes, and genes on the inactive X chromosome. The methylation landscape of the human genome reflects this function: methylation is concentrated in transposons and repeat sequences and is rare in promoter regions, except for certain imprinted genes, certain cancer-testis antigen genes, and genes on the inactive X chromosome in females (49). DNA methylation is also required for normal chromosome structure and stability. Demethylation and chromosome rearrangements at juxtacentromeric heterochromatin are observed in patients with immunodeficiency, centromere instability, and facial anomaly syndrome (OMIM 242860), which is caused by mutations in the DNA methyltransferase 3B (DNMT3B) gene (63).Cancer cells commonly exhibit aberrant genomic methylation patterns (3,20). The epigenetic dysregulation is complex, and the causes are not known. Hypomethylation of repeat sequences often coexists with hypermethylation of a subset of promoters. Hypomethylation and hypermethylation can independently predict tumor malignancy (21). A loss of imprinting increased the incidence of tumorigenesis (31, 51), and aberrant methylation had different effects on the progressions of different cancers (64).The mechanism of transcriptional repression of methylated DNA is not known. The chromatin-associated factors MeCP2, methyl-binding domain 1 (MBD1), MBD2, and Kaiso have been reported to repress methylated promoters, but methylated promoters are not reactivated in the absence of these factors, and the phenotypes of mice that lack these factors do not resemble those of mice that lack DNA methyltransferases (29,45,57,66).DNA methylation in mammals is catalyzed by three methyltransferases, DNMT1, DNMT3A, and DNMT3B (27). Biochemical and genetic data support a model in which all three enzymes have de novo and maintenance activities and cooperate to establish and maintain genomic methylation patterns. Of the methyltransferases, DNMT1 has the highest expression level in vivo and the highest specific activity in vi...