  We report on the first observation of the nuclear region of M31 with the
Chandra X-ray Observatory. The nuclear source seen with the Einstein and ROSAT
HRIs is resolved into five point sources. One of these sources is within 1'' of
the M31 central super-massive black hole. As compared to the other point
sources in M31, this nuclear source has an unusual x-ray spectrum. Based on the
spatial coincidence we identify this source with the central black hole, and
note that the unusual spectrum is a challenge to current theories. A bright
transient is detected ~26'' to the west of the nucleus, which may be associated
with a stellar mass black hole.
