Lying at a projected distance of 40' or 9 kpc from the center of M31, Andro
meda IV is an enigmatic object first discovered during van den Bergh's sear
ch for dwarf spheroidal companions to M31. Since it is bluer, more compact,
and has a higher surface brightness than other known dwarf spheroidals, it
has been suggested that And IV is either a relatively old "star cloud" in
the outer disk of M31 or a background dwarf galaxy. We present deep Hubble
Space Telescope WFPC2 observations of And IV and the surrounding field, whi
ch, along with ground-based long-slit spectroscopy and Ha imagery, are used
to decipher the true nature of this puzzling object. We find compelling ev
idence that And IV is a background galaxy seen through the disk of M31. The
moderate surface brightness (<(mu)over bar>(V) similar to 24), very blue c
olor (V - I less than or similar to 0.6), low current star formation rate (
similar to 0.001 M. yr(-1)), and low metallicity (similar to 10% Z.) report
ed here are consistent with And IV being a small dwarf irregular galaxy, pe
rhaps similar to Local Group dwarfs such as IC 1613 and Sextans A. Although
the distance to And IV is not tightly constrained with the current data se
t, various arguments suggest it lies in the range 5 less than or similar to
D less than or similar to 8 Mpc, placing it well outside the confines of t
he Local Group. It may be associated with a loose group of galaxies, contai
ning major members UGC 64, IC 1727, and NGC 784. We report an updated posit
ion and radial velocity for And IV.