Compartmentalization is a hallmark
of cellular systems and an ingredient
actively exploited in evolution. It is also being engineered and exploited
in synthetic biology, in multiple ways. While these have demonstrated
important experimental capabilities, understanding design principles
underpinning compartmentalization of genetic circuits has been elusive.
We develop a systems framework to elucidate the interplay between
the nature of the genetic circuit, the spatial organization of compartments,
and their operational state (well-mixed or otherwise). In so doing,
we reveal a number of unexpected features associated with compartmentalizing
synthetic and template-based circuits. These include (i) the consequences
of distributing circuits including trade-offs and how they may be
circumvented, (ii) hidden constraints in realizing a distributed circuit,
and (iii) appealing new features of compartmentalized circuits. We
build on this to examine exemplar applications, which consolidate
and extend the design principles we have obtained. Our insights, which
emerge from the most basic and general considerations of compartmentalizing
genetic circuits, are relevant in a broad range of settings.