The rsmA gene of Streptomyces coelicolor lies directly upstream of the gene encoding the group 3 sigma factor M . The RsmA protein is a putative member of the HATPase_c family of anti-sigma factors but is unusual in that it contains seven cysteine residues. Bacterial two-hybrid studies demonstrate that it interacts specifically with M , and in vitro studies of the purified proteins by native PAGE and transcription assays confirmed that they form a complex. Characterization of RsmA revealed that it binds ATP and that, as isolated, it contains significant quantities of iron and inorganic sulfide, in equal proportion, with spectroscopic properties characteristic of a [2Fe-2S] cluster-containing protein. Importantly, the interaction between RsmA and M is dependent on the presence of the iron-sulfur cluster. We propose a model in which RsmA regulates the activity of M . Loss of the cluster, in response to an as yet unidentified signal, activates M by abolishing its interaction with the anti-sigma factor. This represents a major extension of the functional diversity of iron-sulfur cluster proteins.Iron-sulfur proteins constitute a ubiquitous and hugely functionally diverse family of proteins that contain clusters of iron atoms bridged by acid-labile sulfides. Protein cysteine residue side chains normally complete the tetrahedral coordination of each iron. The capacity to delocalize electrons over both iron and sulfur ions makes iron-sulfur clusters ideally suited to roles in electron transfer pathways such as the respiratory and photosynthetic electron transfer chains and in nitrogen fixation. They are also involved in substrate binding and activation (e.g. in dehydratases such as aconitase and the radical S-adenosylmethionine family of enzymes), sulfur donation (e.g. biotin synthase), and the regulation of enzyme activity (e.g. phosphoribosylpyrophosphate amidotransferase (see Ref. 1 and references therein).In addition to these roles, there are also several well characterized examples of iron-sulfur clusters involved in regulation of gene expression in bacteria. SoxR, which contains a redoxactive [2Fe-2S] cluster (2), responds to oxidative stress and activates SoxS, another transcription factor that, in turn, activates the transcription of the target genes (3, 4). FNR is a CRP-like transcription regulator that controls the expression of genes involved in the adaptation to anoxia (5). The sensory domain (N terminus) binds a [4Fe-4S] cluster that degrades in the presence of O 2 to a [2Fe-2S] cluster via a two-step mechanism involving a [3Fe-4S] cluster intermediate (6), with a concomitant loss of DNA-binding activity (7,8). IscR, a transcription regulator involved in iron-cluster synthesis, requires the presence of a [2Fe-2S] cluster for its activity (9).Transcriptional regulation also occurs through the composition of RNA polymerase holoenzyme (10). In addition to the principle sigma factor, essential for housekeeping functions, many bacteria contain several alternative sigma factors that are required for cellular res...