DNA sequences with high potential for forming an alternate DNA structure, Z-DNA, are found frequently throughout the mammalian genome (
6,
39). Despite extensive investigations over the past two decades, the biological function of Z-DNA structure has not been well established (
34). Z-DNA-forming sequences, such as TG or GC repeats, are detected more frequently in the 5′ regulatory region of a gene than in other regions (
36), suggesting that Z-DNA structure may play a role in the regulation of transcription. The formation of Z-DNA structure is well correlated with the transcriptional activity of the c-Myc gene (
42). Studies of
Saccharomyces cerevisiae with an artificial promoter suggest that Z-DNA structure in the promoter region can act as a
cis element in gene regulation (
33,
35). An analysis of human chromosome 22 indicates that Z-DNA-forming regions and the nuclear factor I (NFI) target sites are well correlated with the locations of known and predicted genes across the chromosome and accumulate around the transcription start sites (
3). It was reported recently that the Z-DNA-binding activity of the E3L gene of the vaccinia virus product may regulate its pathogenicity, possibly by regulating transcription from cellular genes involved in fighting viral infection (
17). We have previously shown that Z-DNA formation at the promoter of the colony-stimulating factor 1 (CSF1) gene is accompanied by transcriptional activation by a chromatin remodeling complex (
25).
Mammalian DNA is organized in a highly ordered chromatin structure, with the nucleosome as its basic repeat unit. The local chromatin architecture affects the accessibility of regulatory sequences and, thus, the expression potential of a gene. Structural changes result from posttranslational histone modifications (
1,
4,
20,
21,
37,
38,
44) and from the activity of ATP-dependent remodelers, prototyped by the SWI/SNF complex (
9,
12,
14,
19,
27-
29,
31,
32,
40). BRG1 is the essential ATPase subunit of the mammalian SWI/SNF-like BAF complexes (
10,
15,
41). Mutations of BRG1 have been identified in numerous cancerous cell lines (
43), and inactivation of BRG1 in mice is lethal (
2). In cell lines devoid of BRG1, reexpression activates many genes, including the CSF1 gene (
25,
45).
We have shown that the TG repeat sequence and a binding site for the NFI or CAAT-box transcription factor (CTF) in the CSF1 promoter are required for activation by BRG1 (
25). After activation of the CSF1 gene by BRG1, a Z-DNA structure is detected in the promoter region (
25), suggesting that Z-DNA formation may be involved in the activation process. However, there is no experimental evidence regarding the mechanism of Z-DNA function in the expression of the CSF1 gene. The extensive negative supercoiling generated by transcription from the promoter can stabilize Z-DNA conformation in cells (
24,
42); thus, it is not clear whether Z-DNA formation is a result of transcriptional activation or whether it plays an active role in the chromatin remodeling and transcriptional activation. In this report, we provide critical evidence that formation of Z-DNA structure plays an active role in modulating inhibitory chromatin structure. We show that Z-DNA formation facilitates productive chromatin remodeling by the BRG1-containing complexes by promoting the transition from a transient and partial remodeling to a more complete disruption of the nucleosomal structure. We propose that formation of Z-DNA structure is an important mechanism in regulating chromatin structure.