Plasmids were prepared by inserting genomic DNA fragments from Streptomyces cacaoi within the mel gene of plasmid pU.702. The inserted DNA fragments contain the i-lactamase-encoding bla gene and upstream nucleotide sequences of various lengths. The transcription start point of bla was identified by nuclease Si mapping. Upstream nucleotide sequences of sufficient lengths had an enhancing effect on I8-lactamase production by the Streptomyces host. The dot blot hybridization assay revealed that this effect was exerted at the transcriptional level. Experimental evidence strongly suggests that the underlying mechanism involves, at least in part, one or several trans-acting elements. In one of the constructs, in which the upstream nucleotide sequence was reduced to 0.3 kb, the bla promoter was present but the bla gene was expressed by readthrough from a promoter, possibly the mel promoter, of the pU702 vector.P-Lactamases are enzymes that effectively hydrolyze the P-lactam antibiotics into biologically inactive metabolites.Depending on the bacterial species, different regulatory mechanisms are involved in the expression of the ,-lactamase structural gene (bla). Thus, for example, in Bacillus licheniformis, inducible ,-lactamase synthesis is controlled by at least two genes, blaI and blaR. blaI encodes a repressor (9) whose expression is autoregulated. blaR is transcribed together with blaI as a polycistronic mRNA from the blaI promoter (18), and the product of blaR, a membrane-bound penicillin-binding protein, functions as a penicillin sensory transducer (15a, 42). A repressor also seems to be involved in 1-lactamase expression in Enterobacter cloacae (11) and Citrobacterfreundii (21), while in Escherichia coli, bla appears to be regulated by a growth rate-dependent attenuator (15).Streptomyces spp. produce a wide range of antibiotics. In order to protect themselves, they also provide a wide range of enzymes that modify the antibiotics and/or their targets (24,26,35). Often, but not always, the genes that code for these defensive enzymes and those that code for antibiotic synthesis are grouped into clusters, providing the possibility of coordinated regulation of the antibiotic-synthesizing and -modifying machineries (4). This picture, however, does not apply to P-lactamase production in Streptomyces spp. bla is not connected to the genes involved in P-lactam synthesis.