The glycopeptide antibiotic vancomycin has been widely used to treat infections of Gram-positive bacteria including Clostridium difficile and methicillin-resistant Staphylococcus aureus. However, since its introduction, high level vancomycin resistance has emerged. The genes responsible require the action of the two-component regulatory system VanSR to induce expression of resistance genes. The mechanism of detection of vancomycin by this two-component system has yet to be elucidated. Diverging evidence in the literature supports activation models in which the VanS protein binds either vancomycin, or Lipid II, to induce resistance. Here we investigated the interaction between vancomycin and VanS from Streptomyces coelicolor (VanS Sc), a model Actinomycete. We demonstrate a direct interaction between vancomycin and purified VanS Sc , and traced these interactions to the extracellular region of the protein, which we reveal adopts a predominantly α-helical conformation. the VanS Scbinding epitope within vancomycin was mapped to the N-terminus of the peptide chain, distinct from the binding site for Lipid II. In targeting a separate site on vancomycin, the effective VanS ligand concentration includes both free and lipid-bound molecules, facilitating VanS activation. This is the first molecular description of the VanS binding site within vancomycin, and could direct engineering of future therapeutics. Vancomycin is a glycopeptide antibiotic that exerts its antimicrobial effect on a variety of Gram-positive bacterial species, and has been seen as a last line of defence in the treatment of complicated clinical infections including Clostridium difficile and methicillin-resistant Staphylococcus aureus (MRSA). Despite the significant toxicity of vancomycin in patients, there is still strong clinical reliance on this drug as a last line of defence against such infections 1. In some cases, MRSA infections are incalcitrant and vancomycin-resistant Enterococcal (VRE) strains are resistant to a wide panel of antibiotics. As a result, VRE and MRSA strains are now on worldwide health authorities' high priority lists, and new treatments are desperately needed 1-3. Three recently approved semi-synthetic glycopeptide derivatives, oritavancin, dalbavancin and telavancin, are being treated as reserve antibiotics to be used sparingly to preserve their efficacy 4. The mode of action of vancomycin involves binding to the d-alanyl-d-alanine-terminating pentapeptide of the cell wall precursor Lipid II, preventing its utilisation in biosynthesis of bacterial peptidoglycan cell wall 5. Vancomycin is one of a number of antibiotics that target Lipid II rather than the enzymes that use Lipid II as a substrate 6. Inducible high-level resistance to vancomycin is commonly found in soil bacteria including the Actinomycetes 7 where it has been genome-encoded for millennia 8. Recently resistance genes have spread intergenerically into S. aureus, resulting in the first strains of vancomycin-and methicillin-resistant S. aureus (VRSA) causing widespread...