The very recent detection of the faint host galaxy of one gamma-ray bu
rst(1-4), and the determination of a cosmological redshift for another
(5), demonstrates that these events are the most luminous phenomena in
the Universe, emitting more energy in radiation than a supernova over
just a few seconds. The source of this energy is still unknown, but m
ay become clear through studies of the counterparts at longer waveleng
ths. Here we report the detection of an optical counterpart to a gamma
-ray burst (GRB971214) that occurred on 14 December 1997, It faded rap
idly over a two-week period. just like the previous two optical transi
ents(1,6-11); which dispels any doubt that the three events are the op
tical afterglows of gamma-ray bursts. The 14 December optical transien
t is the faintest of the three, and also is much redder than the other
two. This reddening probably arises because of scattering by interste
llar dust along the line of sight, which is presumably present in the
denser regions of the host galaxy, where stars form. This suggests tha
t the burst's progenitor did not stray too far from the point of its b
irth, which, regardless of the nature of the source, appears to be in
a region of dense gas.