Long inverted repeats (palindromes) are ubiquitous among prokaryotic and eu
karyotic genomes. Earlier work has implicated both DNA breaks and short inv
erted repeats (IRs) in the formation of long palindromes in yeast and Tetra
hymena by a proposed mechanism of intramolecular recombination. Here we rep
ort that long-palindromic linear plasmids are formed in Streptomyces follow
ing double strand DNA breakage by a nonrecombinational intra-strand anneali
ng process that also involves IRs. By modification of palindrome-generating
linear plasmids and development of a novel procedure that enables the sequ
encing of palindrome junctions, we show that long-palindrome formation occu
rs by unimolecular intra-strand annealing of IRs followed by 3' extension o
f the resulting DNA fold-back. The consequent hairpin structures serve as t
emplates for synthesis of duplex linear plasmids containing long palindrome
s. We suggest that this model for long-palindrome formation in Streptomyces
may represent a generally applicable mechanism for generating DNA palindro
mes.