A mutant strain of Escherichia coli in which β-glucoside transport is resistant to catabolite inhibition by methyl α-glucoside was characterized. The mutation was probably within the gene, bglC, coding for the β-glucoside enzyme II. The mutant organism is shown to transport the β-glucoside substrate, salicin, in preference to methyl α-glucoside or fructose. Salicin also caused inducer exclusion of lactose in the mutant strain.