RNase III, an Escherichia coli double-stranded endoribonuclease, is known to be involved in maturation of rRNA and regulation of several bacteriophage and Escherichia coli genes. Clones of the region of the E. coli chromosome containing the gene for RNase III (rnc) were obtained by screening genomic libraries in A with DNA known to map near rnc. A phage clone with the rnc region was randomly mutagenized with a ATnJO element, and the insertions were recombined onto the chromosome, generating a series of strains with ATn10 insertions in the rnc region. Two insertions that had Rnc-phenotypes were located. One of them lay in the rnc gene, and one was in the rnc leader sequence. Polarity studies showed that rnc is in an operon with two other genes, era and recO. The sequence of the recO gene beyond era indicated it could encode a protein of -26 kilodaltons and, like rnc and era, had codon usage consistent with a low level of expression. Experiments using antibiotic cassettes to disrupt the genes rnc, era, and recO showed that era is essential for E. coli growth but that rnc and recO are dispensable.RNase III is an Escherichia coli endoribonuclease that cleaves specific double-stranded RNA structures (12,17). It is known to initiate maturation of rRNA from 30S precursor RNA (11,49) and has been implicated in the posttranscriptional processing of the mRNA transcripts of the early genes of bacteriophage T7 (15) Auxotrophs were screened on M56 glucose minimal plates. Each plate was spread with 100 ,ul of hypoxanthine (7.5 mg/ml; purl), glycine (1%; glyA), or nicotinic acid (0.25%; nadB), as appropriate. Antibiotics were used in the following final concentrations (micrograms per milliliter):ampicillin, 50; kanamycin, 25; chloramphenicol, 10; and tetracycline, 12.5. For growth of tetracycline-dependent (Tetd) strains in liquid medium, tetracycline was used at 3.0 ,ug/ml. Development of lambda clones and recombinants. Two different lambda phage libraries of the E. coli genome