The p5 promoter region of adeno-associated virus type 2 (AAV-2) is a multifunctional element involved in rep gene expression, Rep-dependent replication, and site-specific integration. We initially characterized a 350-bp p5 region by its ability to behave like a cis-acting replication element in the presence of Rep proteins and adenoviral factors. The objective of this study was to define the minimal elements within the p5 region required for Rep-dependent replication. Assays performed in transfected cells (in vivo) indicated that the minimal p5 element was composed by a 55-bp sequence (nucleotides 250 to 304 of wild-type AAV-2) containing the TATA box, the Rep binding site, the terminal resolution site present at the transcription initiation site (trs ؉1 ), and a downstream 17-bp region that could potentially form a hairpin structure localizing the trs ؉1 at the top of the loop. Interestingly, the TATA box was absolutely required for in vivo but dispensable for in vitro, i.e., cell-free, replication. We also demonstrated that Rep binding and nicking at the trs ؉1 was enhanced in the presence of the cellular TATA binding protein, and that overexpression of this cellular factor increased in vivo replication of the minimal p5 element. Together, these studies identified the minimal replication origin present within the AAV-2 p5 promoter region and demonstrated for the first time the involvement of the TATA box, in cis, and of the TATA binding protein, in trans, for Rep-dependent replication of this viral element.The productive life cycle of adeno-associated virus type 2 (AAV-2) depends upon the presence of a helper virus such as adenovirus or herpes simplex virus that provide essential factors required for both AAV-2 DNA replication and gene expression (1). The viral genome, composed of a 4.7-kb singlestranded DNA molecule, contains two open reading frames (ORFs), rep and cap, encoding the regulatory (Rep78, Rep68, Rep52, and Rep40) and structural (VP1, VP2, and VP3) proteins, respectively. The genome is flanked by 145-base inverted terminal repeats (ITRs) that constitute the essential cis-acting elements required for AAV DNA replication.The current model for AAV-2 DNA replication predicts that viral DNA replicates by a self-priming displacement mechanism that is initiated from the ITR and requires cellular polymerases, helper virus-derived factors and AAV-2 Rep proteins (17,34,59,62). In particular, two AAV-2 regulatory proteins, Rep78 and Rep68, are essential for the replication process. Both of these proteins possess DNA binding, ATPase, helicase, and endonuclease activities. They were shown to bind the ITR at a specific site, called the Rep binding site (RBS), and to cleave it at the terminal resolution site (trs) between two thymidine residues (19,48,49). This process is essential for the completion of the synthesis of a double-stranded monomer form, which is then used as the template for the reinitiation of DNA synthesis (17,59).Previous studies have demonstrated that efficient nicking at the trs required, bes...