The circuit uses an LDR, operational amplifier IC CA3140, and other components to automatically control street lights. The LDR's resistance varies with light intensity, affecting the voltage inputs to the IC. During the day when the LDR resistance is low, the IC output is low and the transistor cuts off, turning off lights. At night when the LDR resistance increases, the IC output goes high, turning on the transistor and lights. A relay is used to control higher power street lights since it can isolate the small IC signal from the larger street light loads.