The lac operon consists of three genes in E. coli that process lactose and is regulated by the presence of glucose and lactose. When glucose is absent and lactose is present, β-galactosidase is produced, allowing the bacterium to metabolize lactose; otherwise, a repressor protein blocks transcription. The presence of glucose prevents stable binding of RNA polymerase to the promoter, requiring an activator protein for transcription when only lactose is present.