Transgenic construct used to study the modulation of enhancer-promoter interactions by insulator elements. Contains divergently transcribed w and lacZ reporter genes with eve regulatory sequence containing the stripe 2 and stripe 3 enhancers inserted between the two reporters (stripe 2 is proximal to lacZ). A 430bp fragment of gypsy carrying 12 su(Hw) binding sites has been inserted in between the stripe 2 and stripe 3 enhancers.