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Five mutants that produce toxin in medium with excess iron were isolated from strain C7(beta). The iron content of bacteria grown on this medium was considerably higher than that of C7(beta) cells grown in medium containing the minimum amount of iron needed to inhibit toxin production. When the nonlysogenic, nontoxinogenic strain C7(-) was lysogenized with phages from each of the mutants, toxin production by all of the resulting lysogens, like that by parent strain C7(beta), ceased upon iron addition. When the mutants were superinfected with beta45 phage, both toxin and CRM45 were produced in medium with excess iron. One of the mutant strains lost its prophage as a result of treatment with ultraviolet light. When the cured strain was lysogenized with phage carrying a mutation in the tox structural gene, the lysogen produced the mutant protein at the maximum rate in medium with excess iron. These findings show that the mutant strains are not phage mutants, but are bacterial host mutants, and that a host factor(s) is involved in the inhibition of toxin production by iron.