  We present results from a 45 ks Chandra/ACIS-I observation of the nearby
($z=0.01646$) NGC 507 group. The X-ray surface brightness profile of the outer
region of the group is well described by an isothermal $\beta$-profile
consistent with earlier ROSAT observations. We find a sharp edge or
discontinuity in the radial surface brightness profile 55 kpc E and SE of NGC
507 covering a $\sim125^\circ$ arc. At the sharpest part of the discontinuity,
the surface brightness declines by a factor of $\sim$2 over a distance of 6.9
kpc ($\sim 15''$). The inner and outer gas temperatures across the
discontinuity differ by only about 0.2 keV (interior and exterior gas
temperatures are 1.2 and 1.3 keV, respectively). Spectral analysis indicates
that there is a large gradient in the elemental abundance across the
discontinuity, and comparison with the low resolution NVSS radio maps suggests
that the discontinuity is aligned with a low surface brightness radio lobe. We
conclude that the appearance of this discontinuity is the result of the
transport of high abundance material from the center of the galaxy by the
expanding radio lobe, similar to structures seen in {\em Chandra} observations
of Perseus A and Hydra A.
