Specific transcriptional regulation is essential for precise control of many biological processes, including tissue development and responses to environmental stimuli. Alterations in gene expression are commonly associated with human diseases and disorders (
Jimenez-Sanchez et al., 2001;
Vaquerizas et al., 2009). A key regulatory step in the control of gene expression is the binding of transcription factors to DNA to activate gene transcription (
Hochheimer and Tjian, 2003;
Ptashne and Gann, 1997). Both
cis and
trans factors can influence transcription factor binding. In
cis, binding typically requires recognition of a specific DNA sequence (
Jacob and Monod, 1961); sequence variation in DNA binding motifs affects transcription factor binding occupancy (
Kasowski et al., 2010;
Schmidt et al., 2010;
Zheng et al., 2010). However, high affinity binding sites occur more frequently than experimentally detected binding events, even for transcription factors in organisms with a relatively small genome such as
Saccharomyces cerevisiae (
Harbison et al., 2004;
MacIsaac et al., 2006). Among vertebrates, binding events display a species-specific pattern despite similarity between the consensus binding motifs of transcription factors (
Schmidt et al., 2010). Among human individuals, the majority of transcription factor binding variance cannot be explained by genetic differences in binding sites (
Kasowski et al., 2010), suggesting that
trans factors also influence transcription factor binding. In
trans, chromatin structure restricts DNA accessibility (
Liu et al., 2006;
Wasson and Hartemink, 2009), but the effect of nucleosome occupancy on the sequence-specific binding of transcription factors binding has not yet been systematically explored. Other
trans factors, such as cooperating and competing factors (
Pan et al., 2010;
Pierce et al., 2003), have been studied primarily at the level of individual genes for their influence on transcriptional control, but not evaluated on a global scale. Moreover, binding of a transcription factor
per se is often not sufficient for transcriptional regulation (
Birney et al., 2007;
Farnham, 2009;
Harbison et al., 2004;
MacIsaac et al., 2006). Thus, it remains unclear what determines the genomic locations to which a transcription factor binds and whether this binding is able to influence the transcription of a gene (
Farnham, 2009).
To further complicate matters, transcription factors of the same family contain structurally conserved DNA binding domains and usually recognize similar short DNA motifs (
Badis et al., 2009;
Berger et al., 2008;
Wei et al., 2010). However, these factors frequently regulate distinct biological responses (
Robinson and Lopes, 2000;
Sharrocks, 2001). The conflict between similarity in binding and divergence in regulation raises two questions: How are distinct patterns of transcriptional regulation achieved? How is the regulation by a given transcription factor influenced by others that recognize very similar DNA motifs? To answer these questions, it is necessary to systematically interrogate, on a genome-wide scale, the factors that may contribute to the specificity of transcription factor binding and regulation.
We used gene regulation by the phosphate-responsive (
PHO) signaling pathway as a model system to explore the determinants for transcription factor binding and function. Pho4, a basic-helix-loop-helix (bHLH) transcriptional activator in
S. cerevisiae, is regulated in response to environmental inorganic phosphate (Pi) availability and activates a transcriptional program together with the transcription factor Pho2 when cells are limited for Pi (
Ogawa et al., 2000). In Pi rich conditions, Pho4 is phosphorylated and transported from the nucleus into the cytoplasm; in phosphate-limited conditions, Pho4 is de-phosphorylated and transported from the cytoplasm into the nucleus (
O'Neill et al., 1996;
Schneider et al., 1994). Pho4 binds with high affinity to ‘CACGTG’ motifs
in vivo (
Harbison et al., 2004) and
in vitro (
Badis et al., 2008;
Maerkl and Quake, 2007;
Zhu et al., 2009). In this study, we found that Pho4 is bound to only ~14% of its consensus binding sites, and only a quarter of those binding events result in activation of gene transcription. We demonstrated that this genome-wide binding and regulatory pattern is determined by a combination of chromatin restriction, competitive binding from the factor Cbf1 that recognizes the same motif as Pho4, and cooperation with Pho2. We also discovered that Cbf1 competition raises the threshold of gene activation and helps to define the specificity of
PHO gene regulation. Combining our experimental observations, we can predict transcription factor binding and function at a whole genome level.