In Saccharomyces cerevisiae, proximity to a telomere affects both transcription and replication of adjacent DNA. In this study, we show that telomeres also impose a position effect on mitotic recombination. The rate of recombination between directly repeated tracts of telomeric C 1-3 A/TG 1-3 DNA was reduced severely by proximity to a telomere. In contrast, recombination of two control substrates was not affected by telomere proximity. Thus, unlike position effects on transcription or replication, inhibition of recombination was sequence specific. Moreover, the repression of recombination was not under the same control as transcriptional repression (telomere position effect; TPE), as mutations in genes essential for TPE did not alleviate telomeric repression of recombination. The reduction in recombination between C 1-3 A/TG 1-3 tracts near the telomere was caused by an absence of Rad52p-dependent events as well as a reduction in Rad1p-dependent events. The sequence-specific repression of recombination near the telomere was eliminated in cells that overexpressed the telomere-binding protein Rap1p, a condition that also increased recombination between C 1-3 A/TG 1-3 tracts at internal positions on the chromosome. We propose that the specific inhibition between C 1-3 A/TG 1-3 tracts near the telomere occurs through the action of a telomere-specific end-binding protein that binds to the single-strand TG 1-3 tail generated during the processing of recombination intermediates. The recombination inhibitor protein may also block recombination between endogenous telomeres.[Key Words: Telomeres; recombination; yeast; position effect; telomere replication] Received April 29, 1998; revised version accepted August 3, 1998.In most organisms, telomeres consist of simple repetitive DNA. For example, each end of each Saccharomyces chromosome bears ∼300 bp of C 1-3 A/TG 1-3 DNA. Telomeres are required for the stable maintenance and segregation of yeast chromosomes (Sandell and Zakian 1993). In most organisms, including yeast, telomeric DNA is replicated by telomerase, a telomere-specific reverse transcriptase (for review, see Greider 1995). Telomerase extends the G-strand of telomeric DNA using its RNA component as a template. Telomerase-independent pathways for telomere replication also exist. In yeasts (Lundblad and Blackburn 1993;McEachern and Blackburn 1995;Lendvay et al. 1996) and human cells in culture (Murnane et al. 1994;de Lange 1995;Rogan et al. 1995), telomere-telomere recombination can maintain telomeric DNA in the absence of telomerase. In some insects, recombination is probably the sole pathway for maintenance of telomeric DNA (Biessmann et al. 1996;Lopez et al. 1996).The subtelomeric regions of chromosomes from many organisms, including yeast, consist of a variable array of middle repetitive DNA with the variability caused, at least in part, by homologous recombination among the repeats (Brown et al. 1990;Louis et al. 1994). In yeast, the number and identity of these middle repetitive elements vary, both from stra...