One possible intermediate during the terminal stages of the replication of a closed circular DNA is a catenated DNA dimer of the two completed daughter molecules. The two monomer DNA rings in these DNA dimers can be linked as many as 20-30 times. In Escherichia coli, DNA gyrase could act on these catenated dimers to eliminate the linkages between the daughter duplexes, yielding the final monomer product. In this report, this reaction has been studied biochemically. The in vitro pBR322 DNA replication system (Minden, J., and Marians, K. J. (1985) J. Biol. Chem. 260, 9316-9325) was used to manufacture large amounts of multiply linked catenated DNA dimers for use as a substrate for DNA gyrase-catalyzed decatenation. Studies presented here demonstrate that this decatenation reaction is more efficient with supercoiled as opposed to relaxed DNA dimers, proceeds in a distributive fashion, is inhibited by moderate amounts of salt (80 mM KCl), and is stimulated by the E. coli protein HU.