The functional interaction between the orphan nuclear receptors small heterodimer partner (SHP) and liver receptor homolog 1 (LRH-1), where SHP binds to LRH-1 and represses its constitutive transcriptional activity, is crucial for regulating genes involved in cholesterol homeostasis. Here, we report structural and biochemical analyses of the LRH-1͞SHP interaction. The crystal structure and modeling studies of the LRH-1 ligand-binding domain bound to either of the two LXXLL-related motifs of SHP show that the receptor undergoes conformational changes to accommodate the SHP docking and reveal key residues that determine the potency and selectivity of SHP binding. Through a combination of mutagenesis and binding studies, we demonstrate that only the second SHP LXXLL motif is required for repressing LRH-1, and this motif displays a strong preference for binding to LRH-1 over the closely related receptor steroidogeneic factor 1 (SF-1). Structural comparisons indicate that this binding selectivity is determined by residues flanking the core LXXLL motifs. These results establish a structural model for understanding how SHP interacts with LRH-1 to regulate cholesterol homeostasis and provide new insights into how nuclear receptor͞coregulator selectivity is achieved.steroidogeneic factor 1 ͉ bile acids ͉ coactivators ͉ corepressors L iver receptor homolog 1 (LRH-1, NR5A2) is an orphan nuclear receptor that activates an array of genes responsible for development of endodermal organs such as liver, intestine, and pancreas (reviewed in ref. 1). LRH-1 also plays a central role in lipid homeostasis by regulating genes involved in bile acid synthesis, reverse cholesterol transport, and metabolism of lipoprotein complexes (2-6). In the nuclear receptor superfamily, LRH-1 is most homologous to steroidogeneic factor 1 (SF-1, NR5A1), which is essential for sex differentiation and development of adrenals and gonads (7,8). LRH-1 and SF-1 share a highly conserved DNA-binding domain (DBD, Ͼ90% identity) and a moderately conserved ligand-binding domain (LBD, 56% identity). In contrast to most other nuclear receptors that function as dimers, LRH-1 and SF-1 bind with high affinity as monomers to a conserved consensus DNA site found in the promoters of target genes (9). The high degree of similarity in the DBDs of LRH-1 and SF-1 suggests that their different biological activities are contributed in part by distinct structural features in their LBDs, which recruit specific cofactors to regulate transcription.LRH-1 seems to be a constitutively active transcription factor in that it activates many reporters in the absence of any exogenous ligands. The crystal structure of the mouse LRH-1 LBD reveals a sandwich fold of four layers of helices instead of the three layers observed for many other receptors (10). Despite the absence of any ligand in the large ligand-binding pocket, the C-terminal activation helix (AF-2) of LRH-1 is packed in an active conformation. The constitutive LRH-1 activity is proposed to be the result of the stabilization o...