We used an in situ exonuclease III protection technique (C. Wu, Nature [London] 309:229, 1984) to analyze protein-DNA interactions at a dioxin-responsive enhancer. Our results imply that the 2,3,7,8-tetrachlorodibenzo-p-dioxin-receptor complex interacts with the dioxin-responsive enhancer to activate transcription of the cytochrome Pl-450 gene.Halogenated aromatic hydrocarbons are environmental contaminants that produce diverse biological effects (11,12). In mouse hepatoma cells, the prototypical compound, 2,3,7,8-tetrachlorodibenzo-p-dioxin (TCDD, dioxin) activates transcription of the cytochrome P1-450 gene (3,4,16). Studies of receptor-defective cells reveal that this response requires the formation of a TCDD-receptor complex and an interaction between the inducer-receptor complex and the nucleus (3, 4). A cis-acting dioxin-responsive element (DRE) located upstream of the cytochrome P1-450 gene mediates the action of the TCDD-receptor complex (2, 5, 7). The DRE contains two TCDD-responsive domains, which have properties typical of transcriptional enhancers and require TCDD-receptor complexes for their function (5-7). Here, we use an exonuclease protection technique (18,19) to show that both the DRE and the TCDD-receptor complex participate in the formation of a stable nucleoprotein complex within the cell nucleus. These results imply that the TCDDreceptor complex interacts with the DRE in vivo. Figure 1 shows the relevant restriction sites in the DNA upstream of the mouse cytochrome P1-450 gene. The hatched boxes indicate the position of the two DREs (8). To examine this region for resistance to exonuclease III (Exo III), nuclei were prepared by Dounce homogenization and centrifugation (1) and were digested with BamHI (Bethesda Research Laboratories, Inc.) (300 U/ml, 30 min, 30°C) to nick the DNA downstream of the proximal DRE. Next, chromatin (at a DNA concentration of about 1 mg/ml) was digested for 30 min with various concentrations of Exo III (BRL) as previously described (9). The BamHI-Exo IIIdigested DNA was purified by phenol-chloroform extraction, digested with Si nuclease (BRL) (4,000 U/ml, 15 min, 30°C) as previously described (18), and then digested to completion with HindIII (BRL). The repurified and ethanolprecipitated DNA was fractionated by agarose gel electrophoresis, transferred to a nylon membrane (15), and hybridized to a nick-translated (13) probe complementary to the 5' end of the HindIll-HindIII fragment. The 32P-labeled bands were detected by autoradiography, with Kodak XAR-5 film and an intensifying screen.The results in Fig. 2 reveal that BamHI digested the cytochrome P1-450 regulatory region in nuclei from TCDDinduced cells (Fig. 2B, lane b) to a greater extent than in nuclei from uninduced cells (Fig. 2A, Fig. 2A, lane b). However, digestion with Exo III (Fig. 2A, lanes c to g) failed to generate a smaller HindlIlExo III subband(s). In contrast, Exo III digestion of nuclei from TCDD-induced cells generated a 0.67-kilobase HindlIlExo III subband (Fig. 2B, lanes c to g)