Fatty acid desaturation catalyzed by fatty acid desaturases requires molecular oxygen (O 2 ).Saccharomyces cerevisiae cells derepress expression of OLE1 encoding ⌬9 fatty acid desaturase under hypoxic conditions to allow more-efficient use of limited O 2 . It has been proposed that aerobic conditions lead to repression of OLE1 by well-established O 2 -responsive repressor Rox1p, since putative binding sequences for Rox1p are present in the promoter of OLE1. However, we revealed in this study that disruption of ROX1 unexpectedly did not affect the O 2 repression of OLE1, indicating that a Rox1p-independent novel mechanism operates for this repression. We identified by promoter deletion analysis the 50-bp O 2 -regulated (O2R) element in the OLE1 promoter approximately 360 bp upstream of the start codon. Site-directed mutagenesis of the O2R element showed that the putative binding motif (5-GATAA-3) for the GATA family of transcriptional factors is important for O 2 repression. Anaerobic derepression of OLE1 transcription was repressed by unsaturated fatty acids (UFAs), and interestingly the O2R element was responsible for this UFA repression despite not being included within the fatty acid-regulated (FAR) element previously reported. The fact that such a short 50-bp O2R element responds to both O 2 and UFA signals implies that O 2 and UFA signals merge in the ultimate step of the pathways. We discuss the differential roles of FAR and O2R elements in the transcriptional regulation of OLE1.The lipid composition of cellular membranes is regulated to maintain membrane fluidity (22). A key enzyme involved in this process is the membrane-bound ⌬9 fatty acid desaturase, which catalyzes the introduction of the initial double bond between the 9th and 10th carbons of palmitoyl-coenzyme A (CoA) and stearoyl-CoA (35). The correct ratio of saturated to monounsaturated fatty acids contributes to membrane fluidity. Alterations of this ratio have been implicated in various diseases including cardiovascular diseases, obesity, non-insulindependent diabetes mellitus, hypertension, neurological diseases, immune disorders, and cancer in mammals (35). In yeast, this ratio has been suggested to be related to the heat shock response, ethanol tolerance, and mitochondrial movement and inheritance (1,8,45). The regulation of the expression of ⌬9 fatty acid desaturase is, therefore, of considerable physiological importance.In Saccharomyces cerevisiae, ⌬9 fatty acid desaturase is encoded by OLE1 (46). The steady-state level of OLE1 mRNA is regulated at the level of transcription and by mRNA stability, and both regulatory processes are affected by the presence of unsaturated fatty acids (UFAs) in the growth medium (6,10,20). Addition of exogenous UFA represses the transcription of OLE1 and promotes the decay of OLE1 mRNA. A fatty acidregulated (FAR) element which is essential for UFA repression of OLE1 transcription under aerobic conditions has been identified by promoter deletion analysis (10). Simultaneous disruption of the two long-chain (C ...