Bacillus circulans T-3040 produces cycloisomaltooligosaccharide glucanotransferase (CITase) and cycloisomaltooligosaccharides (cyclodextrans, CIs) when it is grown in media containing dextran as the carbon source. To investigate the effects of carbon sources on CITase activity, B. circulans T-3040 was cultured with glucose; sucrose; a mixture of isomaltose, isomaltotriose, and panose (IMOs); a mixture of maltohexaose and maltoheptaose (G67); dextrin (average degree of polymerization = 36); dextran 40; and soluble starch. In addition to dextran 40, CIs were produced when the T-3040 strain was grown in media containing soluble starch as the sole carbon source. CITase production was induced by dextran 40, IMOs, and soluble starch but not by G67 or dextrin, which suggests that α-1,6 glucosidic linkages are required for CITase induction. Although CITase was induced by IMOs, no CIs were produced in the culture. CI-producing activity in the presence of soluble starch as the substrate (SS-CITase activity) was observed only in cultures containing dextran 40 or soluble starch. The production of CITase was significantly unaffected by glucose addition, but SS-CITase activity almost completely disappeared after glucose addition. A 135-kDa protein was found to contribute to CI formation from starch in the presence of CITase. This protein had a disproportionation activity with maltooligosaccharides, and its induction and inhibition system may be different from those of CITase.