The human placental lactogen B (hCS-B) promoter activity is strongly stimulated by thyroid hormones in the rat pituitary GC cell line. The minimal DNA sequence required for stimulation, as determined by transfection with 5' and 3' deletion mutants, spans 67 base pairs, from coordinate -97 to -31. DNase I footprinting experiments show that this thyroid response unit includes two adjacent binding sites: one for the thyroid receptor (-67/-41), the other for the pituitary-specific factor GHF1 (-95/-68). Neither region alone is sufficient to confer thyroid responsiveness. The thyroid receptor binding element (TBE) does not contain any repeats or palindromes but is composed of two different domains, one of which is very similar to the half-palindromic motif described by Glass et al. (Glass, C.K., Holloway, J.M., Devary, O.L., and Rosenfeld, M.G. (1988) Cell 54, 313-323). The other is very rich in purine. The normal human growth hormone (hGH-N) promoter, which is 94% similar to the hCS-B promoter, differs from its hCS-B counterpart precisely in this TBE. This difference may explain the opposite 3,5,3'-triiodothyronine (T3) regulation of these two genes.