The X chromosomal gene Sgs-4 coding for a larval secretion protein of Drosophila melanogaster is expressed stage and tissue specifically and is hyperexpressed in male larvae of most Drosophila stocks which show dosage compensation. We analysed three Sgs-4 alleles which differ in the size of their coding region, in the intensity of their expression and in the level of dosage compensation. The size and amount of Sgs-4 proteins directly reflect those of RNAs. Different RNA sizes result from different numbers of 21 bp repeats within the structural genes. We sequenced 2.8 kb of DNA upstream of the transcription initiation site of the three alleles. Sequences known to be essential for correct gene expression were located. The only difference within DNA sequences from -1 to -1200 between two alleles with different degrees of expression and differing in dosage compensation is a C to T transition at -344 within a supposed consensus sequence for ecdysone receptor complex binding (ECR). This mutation is partly located within a region of dyad symmetry. Alleles with identical expression show identical mutations within a GTT-rich region at -1.2 kb, but differ within a GT-rich region at -2.0 kb. A polyadenylated 0.5 kb RNA was found to be transcribed from the GTT-rich region of the strand opposite to that of Sgs-4. The corresponding gene is active only in larval salivary glands and, therefore, is named gland specific gene, gsg.