The glucocorticoid-progesterone responsive element (GRE/PRE) of the tyrosine aminotransferase (TAT) gene is a steroid-inducible enhancer. We show that the GRE/PRE can also work in the absence of a distal promoter element when located 5' to the ovalbumin TATA box. The GRE/PRE in this position retains progesterone or glucocorticoid receptor and hormone dependency for the induction of gene expression. Initiation of transcription occurs correctly, and induction occurs at the mRNA level. These data indicate that a steroid-inducible enhancer can function without a distal promoter element.