No option “I would like my site to be private, visible only to users I choose” in Privacy Settings

I am running WordPress 3.3.2 self-hosted. I used to see the option “I would like my site to be private, visible only to users I choose” under Privacy Settings but I no longer see this option. Instead, now I only see the options to make the blog visible or not visible to search engines, but no way to make it private.

I have already tried deactivating all plugins and setting to a basic theme (Twenty Eleven 1.3) to see if my plugins or theme were causing a problem, but still do not see the old option.

Any tips much appreciated!

It sounds like you were on WordPress.com previously, which has options that are not built in to the core of WordPress. There are various plugins out there to accomplish a similar end result, such as Restricted Site Access.