Glucocorticoid regulation of rat growth hormone (rGH) gene expression has been investigated in a series of gene transfer studies into cells in culture. It has been established that sequences (-12 to -523) immediately flanking the start site for rGH gene transcription behave as a functional glucocorticoid inducible enhancer when associated with a heterologous promoter (RSV), displaying independence of orientation and position in mediating the glucocorticoid effect. The induction of chloramphenicol acetyl transferase (CAT) gene expression in these constructs by dexamethasone was established at the enzyme and mRNA levels and was inhibited in the presence of the antiglucocorticoid, RU 38486. The glucocorticoid inducible enhancer activity was not restricted to pituitary cells. The constructs containing the rGH-5'-flanking sequences, associated with the RSV promoter, also mediated glucocorticoid induction of CAT gene expression when transiently transfected into MH1C1 cells, a hepatoma cell line. The effect was similarly demonstrable on co-transfection of these constructs with a glucocorticoid receptor expression vector into receptor deficient COS cells. Two elements within these rGH sequences (-97 to -111 and -250 to -264) display partial homology with a consensus sequence computed for a group of glucocorticoid regulatory elements. Mutation of both of these elements or of the more proximal element alone (-97/-111) led to a complete loss of ability to mediate glucocorticoid induction of gene expression. However, the rGH sequences still mediated glucocorticoid induction of gene expression when the distal GRE-like element was mutated or deleted. Thus, the proximal rGH GRE-like element is absolutely required to mediate this glucocorticoid inducible enhancer activity.