The unicellular diazotrophic cyanobacterium, Cyanothece sp. ATCC 51142 temporally separates N2 fixation from photosynthesis. To better understand the processes by which photosynthesis is regulated, we have analyzed Photosystem (PS) II O2 evolution and the PSII lumenal proteins, especially the Mn stabilizing protein (MSP). We describe a procedure using glycine betaine to isolate photosynthetic membranes from Cyanothece sp. that have high rates of PSI and PSII activity. Analysis with these membranes demonstrated similar patterns of O2 evolution in vivo and in vitro, with a trough at the time of maximal N2 fixation and with a peak in the late light period. The pattern of PSI activity was also similar in vivo and in vitro. We cloned the genes for MSP (psbO) and the 12 kDa protein (psbU) and analyzed their transcriptional properties throughout the diurnal cycle. We suggest that the changes in PSII activity in Cyanothece sp. were due to conformational changes in a highly flexible MSP, a suggestion which can now be studied in a chimera. The Cyanothece sp. psbO gene has been transformed into Synechocystis sp. PCC 6803; MSP and O2 evolution in the resulting transformant had properties that were similar to those in Cyanothece sp., providing additional confirmation for the properties of Cyanothece sp. MSP.