The c‐ets protooncogenes have recently been shown to code for transcription factors that activate the oncogene responsive unit of the polyoma virus enhancer. We show that transcription of the stromelysin gene, which is highly expressed in transformed cells and tumours, is efficiently activated by c‐Ets‐1 and ‐2 through two DNA elements. The distal element is a highly conserved palindrome composed of two strong binding sites for c‐Ets‐1. The proximal element does not bind c‐Ets‐1, but may be activated indirectly by increased synthesis of c‐Jun and c‐Fos. Both ets responsive elements mediate activation by the oncoproteins Ha‐Ras, v‐Src and v‐Mos. These results suggest that c‐Ets participates in the mechanisms by which stromelysin gene expression is deregulated in transformed cells and tumours.