This effect takes place when glucose is exhausted and lactose is present: 1. Lactose binds to lac repressors. 2. Bound lac repressors undergo conformational change in shape and detach from the operator (Lac O). 3. The free operator region allows RNA polymerase to bind the promoter region to upregulate (increase) the transcription of Lac Z (Beta-galactosidase) and Lac Y (Lactose permease). 4. The newly synthesised enzymes, Lac Z and Lac Y, metabolise the lactose, providing a negative feedback situation. That’s all!