We present the first evidence, in Bacillus subtilis, for gene regulation through the classical mechanism of repressor-operator interaction. The EcoRI-F immunity region ( immF) of lysogenic phage φ105 contains two promoters, P M and P R, in divergent orientations. P M initiates transcription of the φ105 repressor ( c φ105 ) gene, whereas P R most probably signals the onset of the lytic pathway. Fusions between each of these promoters and the cat-86 gene were constructed, and in-vivo promoter activities were determined, in both the presence and absence of the functional c φ105 product, using S 1 nuclease analysis and chloramphenicol acetyl transferase assays. The results showed that transcription from P M is stimulated, whereas P R activity is negatively controlled by the repressor. This differential regulation appears to be mediated by recognition of a 14 base-pair (bp) sequence, 5′ GACGGAAATACAAG 3′, three identical copies of which are present as direct repeats. Two copies, O R1 and O R2, are located closely together in the non-transcribed region between P M and P R, but do not overlap with the −35 and −10 regions of these promoters. The third copy, O R3, is located some 250 bp downstream from P R, within the coding region ( ORF3) of the proximal gene of the P R transcription unit. When a 231 bp restriction fragment containing only O R3 was inserted between a strong constitutive promoter (P 138) and the cat-86 gene, the in-vivo expression of chloramphenicol resistance was considerably reduced in the presence, but not in the absence, of φ105 repressor. This hybrid P 138-O R- cat-86 construct was subsequently used to select in vivo for operator-constitutive (O c) mutations. Of 25 O c mutants analyzed, all showed base alterations or deletions affecting the 14 bp sequence. We show further that insertion of a chemically synthesized oligonucleotide, containing the 14 bp O R sequence, at a site more than 100 bp downstream from the constitutive P 138 is sufficient for transcription to become negatively controlled by φ105 repressor. In comparison with previously identified Gram-negative bacterial and phage operators, the most unusual aspect of the φ105 O R sequence appears to be its complete lack of 2-fold rotational symmetry.