The Integration Rules (IRules) project at Arizona State University (http://www.eas.asu.edu/~irules) is developing a declarative event-based approach to component integration. Integration rules are based on the concept of active database rules, providing an active approach for specifying event- driven activity in a distributed environment. The IRules project consists of a knowledge model that specifies the IRules Definition Language and an execution model that supports integration rule execution. This research focuses on the execution model and the architectural design parts of the IRules project. The main objective of this research is to develop a distributed execution environment for using integration rules in the integration of black-box components. In particular, this research will investigate the design of an architecture that supports the IRules semantic framework, the development of an execution model for rule and transaction processing, and the design of a rule processing algorithm for coordinating the execution of integration rules. This research will combine the distributed computing framework of Jini, the asynchronous event notification mechanism of the Java Message Service (JMS), and the distributed blocking access functionality of JavaSpaces to support active rule processing in a distributed environment. The limitations of the underlying Enterprise JavaBeans (EJB) component model pose transaction processing challenges for the integration process. This research will develop a suitable transaction model and processing logic to overcome the limitations of the underlying EJB component model. Furthermore, the architectural design will allow an easy extension of the system to accommodate other component models. This research is expected to contribute to nested rule and transaction processing for active rules that have not been previously addressed in distributed rule processing environments. The development of the IRules execution environment will also contribute to the use of distributed rule- based techniques for eventdriven component integration.