The human alpha-l-antitrypsin (AAT) gene is expressed in the liver, and its deficiency causes pulmonary emphysema. We have demonstrated that its 5'-flanking region contains cis-acting elements capable of directing proper transcription in the presence of rat liver nuclear extract. The in vitro transcription system is tissue-specific in that the AAT promoter is functional in nuclear extracts prepared from the liver but not from HeLa cells. Experiments in which rat liver and HeLa nuclear extracts were mixed suggested the presence of a specific activator(s) in hepatocytes rather than a repressor(s) in nonproducing cells. Two protected regions were detected in the promoter by DNase I footprinting analysis with rat liver nuclear extracts. Region one spanned -78 to -52 and region two spanned -125 to -100 in the 5'-flanking sequence of the gene. By gel retardation assays with synthetic oligonucleotides, at least two distinct liver nuclear factors were identified, HNF-1 and HNF-2 (hepatocyte nuclear factors), which bound specifically to the first and second region, respectively. We present evidence that HNF-1 and HNF-2 are positively acting, tissue-specific transcription factors that regulate hepatic expression of the human AAT gene.The pattern of gene expression in mammalian cells requires thousands of genes to be turned on and off in a temporally and spatially regulated manner. Regulation of these genes often occurs at the level of transcription (13). Transcription of class II genes is brought about by sequencespecific DNA-binding proteins that not only help to establish a basal transcription rate but also confer specificity with regard to cell type, developmental timing, and environmental responsiveness to a given promoter (16,47). cis-Acting elements and trans-acting factors are the two basic types of components of the regulatory machinery. cis-Acting sequence elements involved in the tissue-specific regulation of genes coding for differentiated functions have been identified; some of the best documented are mouse immunoglobulins (3, 27), rat insulin (17), chymotrypsin (9), and elastase (53), chicken crystallin (29, 52), and chicken lysozyme (68). trans-Acting factors have been shown to be involved in tissue-specific expression of genes by somatic cell hybridization (4, 6, 38, 45, 58), competition transfection (11, 32, 50, 63, 65), in vitro transcription (8,24,52,60,64), in vivo footprinting (5,18,31), and transfer of nuclear proteins from expressing cells to nonexpressing cells (46). However, little is known about how specific protein-DNA interactions regulate gene expression and how these interactions are integrated into the overall pattern of gene regulation during development.One powerful approach to analyze the molecular mechanism of tissue-specific gene expression is to replicate the in vivo events in cell-free systems and to characterize the regulatory components involved (28,30,48). In addition to containing RNA polymerase II and general initiation factors, such extracts contain various promoter-specific tra...