Low- and high-resolution nuclease mapping of in vivo transcripts, and in vitro transcription reactions using purified RNA polymerase, were used to analyse transcription of and around the mmr gene, which specifies resistance of Streptomyces coelicolor A3(2) to methylenomycin (Mm) and is located in the middle of a cluster of Mm-production-encoding genes. Transcription of mmr is from a single major start point (tsp) which is separated by only 81 bp from a divergent tsp. A pattern of direct and inverted repeats in the nucleotide sequence in this region may play a part in regulation of these promoters. The 3' end of the mmr transcript overlaps by 20-30 bp the 3' end of an RNA molecule involved in Mm production. The converging transcripts both terminate at the same large inverted repeat in the DNA. Purified RNA polymerase terminated transcription at this sequence in vitro (albeit only in one orientation).