The neural crest develops in vertebrate embryos within a discrete domain at the neural plate boundary and eventually gives rise to a migrating population of cells that differentiate into a multitude of derivatives. We have shown that the broad-complex, tramtrack and bric a brac (BTB) domain-containing factor potassium channel tetramerization domain containing 15 (Kctd15) inhibits neural crest formation, and we proposed that its function is to delimit the neural crest domain. Here we report that Kctd15 is a highly effective inhibitor of transcription factor activating enhancer binding protein 2 (AP-2) in zebrafish embryos and in human cells; AP-2 is known to be critical for several steps of neural crest development. Kctd15 interacts with AP-2α but does not interfere with its nuclear localization or binding to cognate sites in the genome. Kctd15 binds specifically to the activation domain of AP-2α and efficiently inhibits transcriptional activation by a hybrid protein composed of the regulatory protein Gal4 DNA binding and AP-2α activation domains. Mutation of one proline residue in the activation domain to an alanine (P59A) yields a protein that is highly active but largely insensitive to Kctd15. These results indicate that Kctd15 acts in the embryo at least in part by specifically binding to the activation domain of AP-2α, thereby blocking the function of this critical factor in the neural crest induction hierarchy.neural plate border | Tfap2 | FoxD3 | transcriptional regulation T he neural crest (NC) is a uniquely vertebrate migratory cell population that gives rise to multiple derivatives, including craniofacial skeleton, peripheral nervous system, and melanocytes, whereas the neural plate border is a broad competence domain that contains progenitors for the NC and placodes (1, 2). When exposed to appropriate stimuli, progenitors acquire NC fate and express multiple factors that activate downstream genes (3-8), and several signaling cascades, including bone morphogenetic protein (BMP), wingless-type MMTV integration site family (Wnt), FGF, retinoic acid, and Notch are vital in NC induction (9-12). Deficits in NC development are responsible for many birth defects (13-15), broadening the interest in this system.An important regulatory component in NC development is transcription factor AP-2, a target of Wnt signaling (16-21). The AP-2 family contains five members (22), among which AP-2α, -β, and -γ act in NC formation. After dimerization, AP-2 binds to DNA at sites with the consensus sequence 5′-GCCNNNGGC-3′, affecting genes in a broad range of biological processes (22-27). AP-2 can be divided into two broad regions: the N-terminal part containing the transactivation domain (AD) and the C-terminal region harboring the DNA-binding domain (DBD) that also mediates dimerization (22,24). In zebrafish and Xenopus embryos, AP-2 is expressed in the NC anlage and has a role in NC formation (20,23,28,29). In zebrafish AP-2α is encoded by tfap2a, and lockjaw and montblanc mutations in this gene exhibit defects in NC deriva...