The Bacillus subtilis phage 29-encoded membrane protein p16.7 is one of the few proteins known to be involved in prokaryotic membrane-associated DNA replication. Protein p16.7 contains an N-terminal transmembrane domain responsible for membrane localization. A soluble variant lacking the N-terminal membrane anchor, p16.7A, forms dimers in solution, binds to DNA, and has affinity for the 29 terminal protein. Here we show that the soluble N-terminal half of p16.7A can form a dimeric coiled coil. However, a second domain, located in the C-terminal half of the protein, has been characterized as being the main domain responsible for p16.7 dimerization. This 70-residue C-terminal domain, named p16.7C, also constitutes the functional part of the protein as it binds to DNA and terminal protein. Sequence alignments, secondary structure predictions, and spectroscopic analyses suggest that p16.7C is evolutionarily related to DNA binding homeodomains, present in many eukaryotic transcriptional regulator proteins. Based on the results, a structural model of p16.7 is presented.In the case of bacteria, replication of the chromosome, plasmids, and infecting phages occurs at the cell membrane (for review see Ref. 1). Besides acting as a scaffold and inherently compartmentalizing DNA replication, membranes are also likely to play an important role in the organization and function of the DNA replication complex (for recent reviews see Refs. 2 and 3). Nevertheless, very little is known about proteins participating in these processes. We started to investigate this fundamental process by using the Bacillus subtilis phage 29, one of the best studied phages (for review see Ref. 4), as a model system. The genome of 29 encodes most, if not all, proteins required for phage DNA replication, and detailed knowledge is available on in vitro 29 DNA replication. This makes 29 an attractive system to study membrane-associated DNA replication.The genome of 29 consists of a linear double-stranded DNA (dsDNA) 1 that contains a terminal protein (TP) covalently linked at each 5Đ end. Initiation of 29 DNA replication occurs via a so-called protein-primed mechanism (4 -6). First, the TP-containing DNA ends are recognized by a 29 DNA polymerase/TP heterodimer. Then, after a transition step, these two proteins dissociate, and the DNA polymerase continues processive elongation, which is coupled to strand displacement, until replication of the nascent DNA strand is completed. Consequently, the DNA replication intermediates can contain extremely long stretches of ssDNA.Ivarie and PĂšne (7) provided evidence that early expressed 29 protein(s) are required for membrane-associated 29 DNA replication. Gene 16.7, present in an early expressed operon, is conserved in all 29-related phages studied so far (4). Previously, we have shown (4, 8, 9) that p16.7 (130 amino acids) is involved in the organization of membrane-associated 29 DNA replication. Protein p16.7 is a membrane protein, and its Nterminal transmembrane domain is responsible for membrane localization (8...