The acetamidase of Mycobacterium smegmatis is an inducible enzyme which enables the organism to utilise several amides as sole carbon sources. The acetamidase structural gene (amiE) is located downstream of four other genes, of which three form a probable operon with amiE; the fourth (amiC) is divergently transcribed. We constructed deletion mutants in two of these genes in order to determine their role in acetamidase expression. Both AmiC and AmiD were shown to be positive regulators of acetamidase expression required for induction. Combinations of regulatory gene deletions were made which revealed that AmiC interacts with the previously characterised negative regulator AmiA, whereas AmiD does not.