The intestinal epithelium is spatially segregated into two compartments, one containing undifferentiated cells in a proliferative state and one with non‐proliferative differentiated cells. Although this epithelium can produce many immune‐modulating substances, emerging evidence suggests that the differentiated cell compartment is less immune responsive. Indeed, it is the differentiated cellular compartment that represents the interface between the highly antigenic luminal environment and the mucosal immune system. The NF‐κB/rel family of transcriptional activators play a critical role in regulating the inflammatory response by activating a wide variety of immune‐modulating genes. These transcription factors are maintained in an inactive state in the cytoplasmic compartment by interaction with inhibitory proteins of the IκB family. In this study we show by immunohistochemistry that IκB‐β is expressed at high levels specifically in the differentiated surface epithelium of the colonic mucosa. Using a naturally occurring compound found in the colon of vertebrates, butyrate, we provide evidence in an intestinal cell line that alteration of IκB‐β expression can modulate the transcriptional activation of the interleukin‐8 (IL‐8) gene by preventing the nuclear translocation of NF‐κB proteins. Therefore, the expression of IκB‐β in the differentiated surface epithelium of the colon may help these cells act as an immunological barrier to prevent activation of the mucosal immune system. J. Leukoc. Biol. 66: 1049–1056; 1999.