Transcription factor which acts as positive regulator of drought stress tolerance. Can transactivate CIPK3, NCED3 and ERECTA. Transactivates several cell-wall-loosening protein genes by directly binding to HD motifs in their promoters. These target genes play important roles in coordinating cell-wall extensibility with root development and growth. Transactivates CYP74A/AOS, AOC3, OPR3 and 4CLL5/OPCL1 genes by directly binding to HD motifs in their promoters. These target genes are involved in jasmonate (JA) biosynthesis, and JA signaling affects root architecture by activating auxin signaling, which promotes lateral root formation. Acts as negative regulator of trichome branching. Required for the establishment of giant cell identity on the abaxial side of sepals. May regulate cell differentiation and proliferation during root and shoot meristem development.