Activation and repression of transcription by homoeodomain-containing proteins that bind a common site

The product of the fushi tarazu (ftz) gene is shown to be a site-dependent activator of transcription. In vitro-defined binding sites act as ftz-dependent enhancers in cultured cells. Another homoeodomain-containing protein, the engrailed gene product, competes for homoeodomain-binding sites and counteracts ftz activation.