In Streptomyces griseus, A-factor (2-isocapryloyl-3R-hydroxymethyl-␥-butyrolactone) switches on aerial mycelium formation and secondary metabolite biosynthesis. An A-factor-dependent transcriptional activator, AdpA, activates multiple genes required for morphological development and secondary metabolism in a programmed manner. A region upstream of a zinc-containing metalloendopeptidase gene (sgmA) was found among the DNA fragments that had been isolated as AdpA-binding sites. The primary product of sgmA consisted of N-terminal pre, N-terminal pro, mature, and C-terminal pro regions. sgmA was transcribed in an AdpA-dependent manner, and its transcription was markedly enhanced at the timing of aerial mycelium formation. AdpA bound two sites in the region upstream of the sgmA promoter; one was at about nucleotide position ؊60 (A site) with respect to the transcriptional start point of sgmA, and the other was at about position ؊260 (B site), as determined by DNase I footprinting. Transcriptional analysis with mutated promoters showed that the A site was essential for the switching on of sgmA transcription and that the B site was necessary for the marked enhancement of transcription at the timing of aerial mycelium formation. Disruption of the chromosomal sgmA gene resulted in a delay in aerial hypha formation by half a day. SgmA is therefore suggested to be associated with the programmed morphological development of Streptomyces, in which this peptidase, perhaps together with other hydrolytic enzymes, plays a role in the degradation of proteins in substrate hyphae for reuse in aerial hypha formation.Members of the gram-positive, soil-inhabiting, filamentous bacterial genus Streptomyces produce a wide variety of secondary metabolites and show complex morphological differentiation culminating in sporulation. These characteristics make members of this genus important as industrial microorganisms and as one of the model prokaryotes for studying multicellular differentiation (3, 4). On agar medium, one or more germ tubes formed from a germinating spore grow into substrate hyphae, which branch frequently and grow rapidly by cell wall extension at the hyphal tips. Subsequently, aerial hyphae emerge by reuse of material assimilated into the substrate mycelium, such as DNA, proteins, and storage compounds. Many cells in substrate hyphae thus lyse and die (5,21,31). At this stage of development, therefore, enzymes for the degradation of these substances, such as proteases, nucleases, lipases, and glucanases, are presumably required. In fact, nucleases and serine proteases are associated with the development of aerial hyphae from substrate hyphae (5, 23). When the apical growth of aerial hyphae stops, in contrast to the substrate mycelium, septa are formed at regular intervals along the hyphae to form many unigenomic compartments within a sheath. The sporulation septa consist of two membrane layers separated by a double layer of cell wall material, which permits the eventual separation of adjacent spores (7). Spore chains usua...