If there is lactose present and no glucose
1. Regulatory gene produces repressor protein
2. Repressor protein binds to operator site
3. Allolactose is an inducer, it binds to repressor protein
4. Stops lac repressor protein blocking RNA polymerase on operator
5. Enzyme RNA polymerase transcribes structural genes lac z, y, and a
6. Genes code for proteins B-galactosidase and permease
7. Lac will be synthesised for digestion of lactose, which can be used as energy source in absence of glucose