The PH04 gene encodes a positive regulatory factor involved in regulating transcription of various genes in the phosphatase regulon of Saccharomyces cerevisiae. Besides its own coding region, the 1.8-kilobase PH04 transcript contains a coding region for a mitochondrial protein which does not appear to be translated. Four functional domains were found in the PH04 protein, which consists of 312 amino acid (aa) residues as deduced from the open reading frame of PHO4. A gel retardation assay with 0-galactosidase::PH04 fused protein revealed that the 85-aa C terminus is the domain responsible for binding to the promoter DNA of PHOS, a gene under the control of PHO4. This region has similarities with the amphipathic helix-loop-helix motif of c-myc protein. Determination of the nucleotide sequences of four PH04C mutant alleles and insertion and deletion analyses of PH04 DNA indicated that a region from aa 163 to 202 is involved in interaction with a negative regulatory factor PH080. Complementation of a pho4 null allele with the modified PH04 DNAs suggested that the N-terminal region (1 to 109 aa), which is rich in acidic aa, is the transcriptional activation domain. The deleterious effects of various PH04 mutations on the constitutive transcription of PH05 in PH04C mutant cells suggested that the region from aa 203 to 227 is involved in oligomerization of the PH04 protein.The repressible acid phosphatase (rAPase; EC 3.1.3.2) in Saccharomyces cerevisiae consists of a major p60 protein, encoded by PHO5, and the minor species p58 and p56, encoded by PHOIO and PHOJl, respectively (38,49). The expressions of these genes are repressed at the transcriptional level by Pi in the medium (19,21). The Pi signals are conveyed through a system composed of at least five gene products, those from PHO2, PHO4, PHO80, PHO81, and PHO85 (33). The PHO85 product is necessary for expression of PHO80 (53), whereas the others are directly involved in the regulatory system (59-61). A recessive mutation at the PHO2, PHO4, or PHO81 locus blocks the derepression of the structural genes of rAPase, whereas a recessive mutation in PHO80 or PHO85 results in constitutive expression of PHO5. Dominant PH04C mutant alleles (formerly named PHO82) cause a constitutive phenotype of rAPase synthesis (50). PHO4 (60) and PHO80 (53) [61].) In high-Pi medium, the PHO80 product, i.e., the negative regulatory factor, interacts directly with the positive factor and prevents transcription of the structural genes of the phosphatase regulon.We report here a dissection of four functional domains of the PH04 protein. The DNA-binding domain is located at the C terminus and has significant similarities with the amphipathic helix-loop-helix (A-HLH) motif of c-myc (29,37). A site for interaction with the negative regulatory factor PHO80 appears to be located in the central region. We * Corresponding author. present evidence for a region necessary for oligomerization of PH04 beside the site for PHO80 interaction. We also suggest that the transcription-activation domain is loc...