During Cassini's close flyby of Enceladus on 14 July 2005, the High Rate Detector of the Cosmic Dust Analyzer registered micron-sized dust particles enveloping this satellite. The dust impact rate peaked about 1 minute before the closest approach of the spacecraft to the moon. This asymmetric signature is consistent with a locally enhanced dust production in the south polar region of Enceladus. Other Cassini experiments revealed evidence for geophysical activities near Enceladus' south pole: a high surface temperature and a release of water gas. Production or release of dust particles related to these processes may provide the dominant source of Saturn's E ring.