A recombinant bacteriophage containing the intact Bacillus brevis gene for gramicidin S synthetase 1, grsA, and the 5' end of the gramicidin S.synthetase 2 gene, grsB, was identified by screening an EMBL3 library with anti-GrsA antibodies. This clone, EMBL315, has a 14-kilobase (kb) insert that hybridizes to the previously isolated 3.9-kb fragment of the grsB gene, which encodes the 155-kilodalton ornithine-activating domain of gramicidin S synthetase 2. Deletion and subcloning experiments with the 14-kb insert located the grsA structural gene and its putative promoter on a 4.5-kb PvuII fragment which encoded the full-length 120-kilodalton protein in Escherichia coli. In addition, hybridization analysis revealed that the 5' end of the grsB gene is located approximately 3 kb from the grsA structural gene. Furthermore, these studies indicated that grsA and grsB are transcribed in opposite orientations.The recent cloning of antibiotic biosynthesis genes from the gram-positive bacteria of the genera Streptomyces (4,6,7,16,17) and Bacillus (13,20) and also from the filamentous fungi (3, 24, 25) facilitated studies on the structure, organization, and regulation of these genes at the molecular level (10,21,26). Gramicidin S is a cyclic decapeptide antibiotic produced by Bacillus brevis in the transition phase from vegetative to stationary growth (19). Gramicidin S biosynthesis is one of the best understood biochemical pathways for a secondary metabolite in Bacillus spp. (11, 12) Two multifunctional enzymes, gramicidin S synthetases 1 and 2, with molecular masses of 120 and 280 kilodaltons (kDa), respectively, are involved in the activation, racemization, and condensation of the constituent amino acids via a thiotemplate mechanism (15) to produce the intact peptide antibiotic (Fig. 1). To understand the organization and regulation of the genes involved in the production of peptide antibiotics in Bacillus spp., we recently cloned the entire tyrocidine synthetase 1 gene, tycA, and studied its regulation in the tyrocidine producer B. brevis ATCC 8185 and in the heterologous host Bacillus subtilis (20,21). We also cloned a 3.9-kilobase (kb) DNA fragment of the gramicidin S synthetase 2 gene; grsB, which directed the synthesis of a 155-kDa ornithine-activating domain (13) (18), was used (Stratagene, San Diego, Calif.). E. coli BHB2688 and BHB2690 were used for the preparation of in vitro packaging extracts and were grown in NZ medium (9,18). Gramicidin S producer B. brevis ATCC 9999 was grown in nutrient broth as described previously (19).Protein crude extracts were prepared. from EMBL315-infected E. coli C600 cells (16) grown at.37°C in NZ medium. Cells were collected before complete lysis, usually at an optical density at 600 nm of about 0.8. Preparation of protein extracts and fractionation with 50% ammonium sulfate were done as described by Krause et al. (13). Further purification of the encoded gene product was carried out by anionexchange fast-performance liquid-chromatography on a MonoQ HR5/5 (Pharmacia, Inc.) column...