The majority of attempts to employ short-hairpin RNA (shRNA) expression vectors as therapeutics to induce the gene-specific silencing effects of RNA interference (RNAi) utilized ubiquitously recognized, highly active pol III promoters like U6 and H1. While silencing efficiency is, at least initially, extremely high, such constructs have the potential to cause serious side effects, resulting either from widespread off-target effects or from saturating the RNAi machinery, which is proving more central to cellular function. We aim to address both of these issues by using pol II promoters instead, which offer a greater means of control, including tissue specificity, chemical inducibility, and more moderate expression levels. Several structural variations were tested in vitro to optimize RNAi induction by pol II-driven shRNAs. The most successful version, selected for in vivo testing, includes the liver-specific fusion promoter containing the human ApoE-hepatic control region enhancer and human alpha-1 antitrypsin promoter (ApoE/hAAT), a sequence for the expression of a simple shRNA with 7nt loop, and the U1 snRNA 3' termination box. When designed to target luciferase and cotransfected with a luciferase expression plasmid into mouse liver by hydrodynamic transfection, this construct induced 90% silencing relative to a random-hairpin control. The construct was next adapted to target hepatitis B virus (HBV) s-antigen (sAg), and packaged as a double-strand in pseudotyped adeno-associated virus serotype 8 (dsAAV8). The hairpin sequence used was for the expression of a 25mer shRNA that had proven to be toxic when expressed from a U6 promoter. Previous work demonstrated that the toxic effect observed for this U6 construct was such that the ultimate result was either loss of the RNAi- induced silencing effect or the death of recipient mice due to liver failure less than a month following injection of expression cassette-harboring AAV. We tested the ApoE/hAAT expression construct in transgenic mice harboring an integrated HBV genome. Over the course of three months, the ApoE/hAAT construct was well tolerated and induced a stable level of sAg silencing of 80% of starting levels. Healthy FVB mice were used in a separate toxicity study for direct comparison of U6- and ApoE/hAAT-driven 25mers. Serum ALT levels were followed over three months as an indicator of liver toxicity. Mice that received the ApoE/hAAT-driven construct had stable, normal ALT levels, while those of mice that received the U6-driven construct spiked to peak around three weeks before gradually returning to normal. While we continue to optimize its efficacy, we conclude that this pol II system is an effective and safer HBV therapeutic in a mouse model of human disease.