In Aspergillus nidulans alcohol dehydrogenase (ADH) I and aldehyde dehydrogenase (AldDH) are co-inducible by acetaldehyde (Pateman et al., 1983; Sealy-Lewis and Lockington, 1984) and subject to carbon catabolite repression. The structural genes alcA and aldA are unlinked, but alcA is closely linked to the positive control gene alcR. We have obtained cDNA clones of alcA and aldA and genomic clones comprising alcA and alcR. The location of these genes in a genomic clone carrying a 13-kb insert was determined by subcloning and subsequent transformation of previously characterised point mutants. We have characterised at the physical level some large deletions encompassing both linked genes. We have shown that induction affects the level of RNA hybridisible with alcA and aldA probes. Mutations in the regulatory gene alcR, result in non-inducibility of RNA hybridisible with either probe. Thus the induction process is possibly at the level of transcription. Analogous experiments suggest that carbon catabolite repression of alcohol dehydrogenase I is equally at the level of transcription.