Chiral liquid crystals exhibit molecular optical activity in the isotropic phase. We have studied the evolution of the optical activity as a function of an applied electric field on a 7 6 . 2~ film of the chiral liquid crystal W7, which exhibits an isotropic-smectic A transition at approximately 40°C. We measured the optical activity by recording the rotation of the plane of polarization of an incident linearly polarized ray of light, provided by a He-Ne laser. The applied biasing electric field is parallel to the direction of the incident beam. We find that at 41.0°C, the plane of polarization shifts from -1.1" for an applied voltage of 30 V to a maximum of -4.0" at 70V. The absolute value of the signal decreases beyond this voltage. These shifts are in the direction of the smectic A phase and are in general larger than those observed as a function of temperature. Close to the isotropic-smectic A phase transition, molecules inside the liquid coalesce to form dynamic coherent groups, which have smectic nature. These groups are randomly oriented with respect to each other in the absence of an electric field. The application of an electric field causes the molecules within these groups to align along the direction of the field and to contribute coherently to the optical activity of the system. The way the molecules align with the field depends on the relative values of the polarizability a, which contributes to the alignment of the long axis ofthe molecule, and the dipole moment p, which contributes to the alignment of the short axis of the molecule. Our preliminary results and calculations suggest that for small fields, the electric field couples with the dipole moment p, whereas for fields in excess of 70V, the field couples with the polarizability of the long axis of the molecule, causing a rotational reorientation of the molecules in the isotropic phase. The value of the field at which this reorientation occurs may be controlled by temperature.