A synthetic nonapeptide, Val-Leu-Ile-Arg-Ile-Met-Val-Ser-Arg, corresponding to residues 286-294 of annexin-II tetramer (A-IIt), was shown to completely inhibit the Ca(2+)-dependent bundling of F-actin by this protein. The inhibitory effect of the nonapeptide required preincubation with F-actin and was reversed by the addition of excess A-IIt. Kinetic analysis suggested that the nonapeptide reduced the K(0.5) but not the Vmax of F-actin bundling. In contrast, addition of excess nonapeptide to A-IIt-bundled F-actin did not reverse F-actin bundle formation. Although the nonapeptide produced a dose-dependent inhibition of A-IIt-dependent F-actin bundling, the binding of A-IIt to F-actin was not affected. These results identify a domain of A-IIt that is involved in the bundling activity of the protein and suggest that this domain binds transiently with F-actin, resulting in activation of the bundling activity of A-IIt.