In CD4<sup>−</sup>CD8<sup>−</sup> double-negative thymocytes, the murine <i>Tcrb</i> locus is composed of alternating blocks of active and inactive chromatin containing <i>Tcrb</i> gene segments and trypsinogen genes, respectively. Although chromatin structure is appreciated to be critical for regulated recombination and expression of <i>Tcrb</i> gene segments, the molecular mechanisms that maintain the integrity of these differentially regulated <i>Tcrb</i> locus chromatin domains are not understood. We localized a boundary between active and inactive chromatin by mapping chromatin modifications across the interval extending from <i>Prss2</i> (the most 3′ trypsinogen gene) to D<sub>β</sub>1. This boundary, located 6 kb upstream of D<sub>β</sub>1, is characterized by a transition from repressive (histone H3 lysine 9 dimethylation [H3K9me2]) to active (histone H3 acetylation [H3ac]) chromatin and is marked by a peak of histone H3 lysine 4 dimethylation (H3K4me2) that colocalizes with a retroviral long terminal repeat (LTR). Histone H3 lysine 4 dimethylation is retained and histone H3 lysine 9 dimethylation fails to spread past the LTR even on alleles lacking the <i>Tcrb</i> enhancer (E<sub>β</sub>) suggesting that these features may be determined by the local DNA sequence. Notably, we found that LTR-containing DNA functions as a barrier-type insulator that can protect a transgene from negative chromosomal position effects. We propose that, in vivo, the LTR blocks the spread of heterochromatin, and thereby helps to maintain the integrity of the E<sub>β</sub>-regulated chromatin domain. We also identified low-abundance, E<sub>β</sub>-dependent transcripts that initiate at the border of the LTR and an adjacent long interspersed element. We speculate that this transcription, which extends across D<sub>β</sub>, J<sub>β</sub> and C<sub>β</sub> gene segments, may play an additional role promoting initial opening of the E<sub>β</sub>-regulated chromatin domain.