To determine the mechanistic differences between canonical and noncanonical TATA elements, we compared the functional activity of two sequences: TATAAA (canonical) and CATAAA (noncanonical). The TATAAA element can support high levels of transcription in vivo, whereas the CATAAA element is severely defective for this function. This dramatic functional difference is not likely to be due to a difference in TBP (TATA-binding protein) binding efficiency because protein-DNA complex studies in vitro indicate little difference between the two DNA sequences in the formation and stability of the TBP-DNA complex. In addition, the binding and stability of the TFIIB-TBP-DNA complex is similar for the two elements. In striking contrast, the TFIIA-TBP-DNA complex is significantly less stable on the CATAAA element when compared with the TATAAA element. A role for TFIIA in distinguishing between TATAAA and CATAAA in vivo was tested by fusing a subunit of TFIIA to TBP. We found that fusion of TFIIA to TBP dramatically increases transcription from CATAAA in yeast cells. Taken together, these results indicate that the stability of the TFIIA-TBP complex depends strongly on the sequence of the core promoter element and that the TFIIA-TBP complex plays an important function in recognizing optimal promoters in vivo.Initiation of mRNA synthesis by RNA polymerase II is the major step of regulation of eukaryotic gene expression and occurs at core promoters that typically consist of a TATA box and initiator element (1). The first step in promoter recognition is binding of TBP (TATA-binding protein) to the TATAAA element (reviewed in Ref.2). Recruitment of TBP is a ratelimiting step in transcriptional initiation in vivo at a majority of promoters (3-5), and promoter occupancy of TBP correlates very well with transcriptional activity (6, 7). The TBP-TATA interaction sets the stage for the nucleation of the remainder of the preinitiation complex, which includes TFIIA, TFIIB, TFIIE, TFIIF, TFIIH, TFIIJ, and RNA polymerase II (reviewed in Ref. 8). TFIIA and TFIIB have each been shown to make direct contacts with TBP and DNA and, in so doing, stabilize the TBP-DNA complex (reviewed in Ref. 9). In addition, TFIIA and TFIIB promoter occupancy is coordinated with that of TBP (10); thus interactions between the DNA, TBP, TFIIA, and TFIIB are likely to play an important role in a majority of promoters in vivo.Despite the apparent requirement of the TATAAA sequence in the initiation of RNA polymerase II transcription, many natural eukaryotic core promoters lack recognizable TATA elements but still require TBP for transcription initiation (11-13). This noncanonical or "TATA-less" subclass includes the promoters of several different types of genes, including the ubiquitously expressed "housekeeping" genes, developmentally regulated genes (growth factors and growth factor receptors), and many oncogenes (14 -16). In addition, several instances of multiple, yet functionally distinct elements driving the expression of a single gene have been described in y...