The glucagon gene is expressed specifically in the alpha cells of the pancreatic islets. We show here that 300 base pairs of the 5'-flanking region of the rat glucagon gene, linked to a chloramphenicol acetyltransferase reporter plasmid transfected into islet cell lines of different hormone-producing phenotypes, directs transcription only in glucagon-producing islet cells. Deletional and linker-scanning mutations and DNase I footprinting assays identify three transcriptional control elements within these 300 base pairs. Two of these elements (G2 and G3) independently display enhancerlike functions on both homologous and heterologous promoters in glucagon (alpha) cells, but only on heterologous promoters in insulin-(beta) and somatostatin-(delta) expressing cells, and not in non-islet cells. The proximal promoter element (GI), characterized by low intrinsic transcriptional activity, is critical for specific expression of the glucagon gene in alpha cells. However, nuclear extracts prepared from all three islet cell phenotypes give similar protection to the three control elements of the glucagon 5'-flanking sequence. We conclude that these phenotypically distinct islet cell lines all contain regulatory DNA-binding proteins interacting with the three control elements of the glucagon gene, but that factors interacting with the glucagon promoter result in transcriptional activation only in alpha cells, to restrict glucagon gene expression to these cells. These observations suggest that interactions of nuclear proteins with cis-control elements are involved in the programmed developmental expression of the islet polypeptide hormone genes.A consequence of developmental differentiation is the expression of specific subsets of genes in terminally differentiated cells. It is well established that the factors that determine both cell-specific and regulated expression of genes consist of complexes of proteins bound to cognate DNA control elements (8,19,21). Studies of the transcriptional expression of deletionally mutated fusion genes introduced into animal cell lines and in mice have identified specific control elements within the 5'-and 3'-flanking regions, introns, and exons of genes (4,21,30 potentiality for differentiating into cell lineages expressing one or more of the three major islet hormones (31). Thus, cell lines derived from rat and hamster islet tumors are useful models for studies of the factors responsible for cellular differentiation and cell-specific expression of these hormone genes.Glucagon is a 29-amino-acid peptide that raises blood glucose levels through its actions on hepatic glycogenolysis and gluconeogenesis (18,39,40 Utilizing both homologous and heterologous promoters, we have identified cis-acting transcriptional elements of the glucagon gene and trans-acting nuclear factors capable of interacting with these elements in a sequence-specific manner to confer islet and alpha cell-specific expression. Three such cis-acting control DNA elements are found within the first 300 bp of the 5'-flanking regi...