Transgenic construct used to study the modulation of enhancer-promoter interactions by insulator elements. Contains divergently transcribed w and lacZ reporter genes with regulatory sequence consisting of a 600bp zen ventral repression element (VRE) and the minimal eve stripe 2 enhancer (MSE) inserted between the two reporters (MSE is proximal to lacZ). A fragment of gypsy carrying 12 su(Hw) binding sites has been inserted in between the stripe 2 and stripe 3 enhancers.