Escherichia coli integration host factor (IHF), a DNA-binding protein, positively regulates expression of the A, clI gene. Purified IHF stimulates cII protein synthesis in vitro, suggesting a direct role for host factor in cII expression. Further evidence for a direct role for IHF was obtained with operon and gene fusions between clI and lacZ or cII and galE. Analysis of these fusions ir vivo demonstrated that IHF is essential for the initiation of cIT translation. Replacement of the entire clI coding sequence with lacZ yielded a gene fusion which was still IHF dependent. However, a cIT-galE fusion carrying a hybrid ribosome binding region expressed galE in IHF mutants. These results indicate that sequences which make cll translation IHF dependent lie between the ribosome binding region and the initiating codon of cII. Failure to translate clI activates a transcription terminator located within cIT and results in polar effects on downstream transcription. This polarity is suppressed by the A N antitermination function. When cloned into another contest, the terminator is active in both wild-type and IHF mutant strains. The amino terminus of clI is located near an IHF binding site in a region with considerable dyad symmetry. The role of IHF in cII translation may be to prevent formation of an RNA-RNA duplex that sequesters the ribosome binding site of cII. The binding of IHF might influence RNA structure by altering the rate of the dissociation of RNA from the DNA template.