The CIII protein of lambdoid bacteriophages promotes lysogeny by stabilizing the phage-encoded CHI protein, a transcriptional activator of the repressor and integrase genes. We have isolated a set of missense mutations in the cll gene of phage A and of phage HK022 that yield inactive CIII proteins. All the mutations are located in the relatively conserved central region of the protein. A comparative analysis of the CIII protein sequence in A, HK022, and the lambdoid bacteriophage P22 leads us to suggest that this central region assumes an amphipathic at-helical structure. This part of the A cIII gene was cloned within a fragment of the lacZ gene (the a-complementing fragment). The resulting fusion protein displays CIII activity. Mutations that yield a nonfunctional fusion protein map within its CIII moiety. These results indicate that the central portion of the CIII protein is both necessary and sufficient for CIII activity.One way to regulate protein activity is through the control of its stability. This could be achieved by the control of the expression of specific proteases or through the synthesis of proteins that specifically inhibit these proteases. Little is known, however, about intracellular antiproteases (see refs. 1 and 2 for reviews).In the lysogenization process of the lambdoid bacteriophages, the CIII protein, a small, phage-encoded polypeptide, acts as a positive factor. Its presence in the cell results in the stabilization of the CII transcriptional activator (3, 4), a usually very unstable protein, with a half-life of the order of 1-2 min (5). The A CIII protein increases lysogeny in a wide range of lambdoid bacteriophages, each expressing a different CII protein (unpublished results). It has also been shown that overproduction of CIII induces the heat-shock response, probably through the stabilization of the heat-shock-specific subunit of the RNA polymerase, a,32 (6). The mechanism by which CIII achieves its effects, however, is as yet unknown.