The dynamic properties of helix 12 in the ligand binding domain of nuclear receptors are a major determinant of AF-2 domain activity. We investigated the molecular and structural basis of helix 12 mobility, as well as the involvement of individual residues with regard to peroxisome proliferator-activated receptor ␣ (PPAR␣) constitutive and ligand-dependent transcriptional activity. Functional assays of the activity of PPAR␣ helix 12 mutants were combined with free energy molecular dynamics simulations. The agreement between the results from these approaches allows us to make robust claims concerning the mechanisms that govern helix 12 functions. Our data support a model in which PPAR␣ helix 12 transiently adopts a relatively stable active conformation even in the absence of a ligand. This conformation provides the interface for the recruitment of a coactivator and results in constitutive activity. The receptor agonists stabilize this conformation and increase PPAR␣ transcription activation potential. Finally, we disclose important functions of residues in PPAR␣ AF-2, which determine the positioning of helix 12 in the active conformation in the absence of a ligand. Substitution of these residues suppresses PPAR␣ constitutive activity, without changing PPAR␣ ligand-dependent activation potential.The three peroxisome proliferator-activated receptor isotypes (PPARs) 5 ␣, /␦, and ␥ (NR1C1, NR1C2, and NR1C3, respectively (1)) form a distinct subfamily of nuclear hormone receptors (2, 3). They are key regulators of lipid and glucose homeostasis, inflammation, cancer, and tissue repair (4 -7). The effect of PPARs on the expression of their target genes results from three events: recognition and binding of the receptor to response sequences in the promoter of the target genes, ligand binding, and co-repressor/co-activator exchange. Two regions exhibit a high degree of similarity in all members of the superfamily, namely the DNA binding domain, which is located toward the N terminus, and the ligand and cofactor binding domain (LBD). Ligand binding by the receptor is generally thought to be the trigger for transcriptional activation, but alternative mechanisms such as modulation of receptor activity by phosphorylation have also been reported (8, 9). Particularly, PPAR␣ shows a high constitutive activity, but the molecular basis and role in vivo of this activity are unclear (10, 11). A wide variety of natural or synthetic compounds, including fatty acids and eicosanoids, was identified as PPAR ligands (12-15). Among the synthetic ligands, the lipid-lowering drugs fibrates and the insulin sensitizers thiazolidinediones are PPAR␣ and PPAR␥ agonists, respectively; these underscore the important role of PPARs as therapeutic targets. Besides its role in ligand binding and dimerization, the LBD is also the site of the major and ligand-dependent transcriptional activation function of the nuclear receptors, called the activation function 2 (AF-2) domain (16). The PPAR LBD consists of 12 ␣ helices forming the characteristic three-l...