  We investigate the role of unitarization effects in virtual photon-proton
(\gamma^*p) interactions at small x. The q\bar{q}-fluctuation of the initial
photon is separated into a small distance and a large distance component and a
model for the unitarization of each component is proposed. The Born
approximation for the small size component is calculated using QCD perturbation
theory. Reggeon diagram technique is used in order to obtain a self-consistent
scheme for both total \gamma^*p cross section and diffractive production. The
model gives a good description of HERA data in the small-x region, with a
single Pomeron of intercept 1.2.
