Type III polyketide synthases (PKSs) found in plants, fungi, and bacteria synthesize a variety of aromatic polyketides. A Gram-positive, filamentous bacterium Streptomyces griseus contained an srs operon, in which srsA encoded a type III PKS, srsB encoded a methyltransferase, and srsC encoded a flavoprotein hydroxylase. Consistent with this annotation, overexpression of the srs genes in a heterologous host, Streptomyces lividans, showed that SrsA was a type III PKS responsible for synthesis of phenolic lipids, alkylresorcinols, and alkylpyrones, SrsB was a methyltransferase acting on the phenolic lipids to yield alkylresorcinol methyl ethers, and SrsC was a hydroxylase acting on the alkylresorcinol methyl ethers. In vitro SrsA reaction showed that SrsA synthesized alkylresorcinols from acyl-CoAs of various chain lengths as a starter substrate, one molecule of methylmalonyl-CoA, and two molecules of malonyl-CoA. SrsA was thus unique in that it incorporated the extender substrates in a strictly controlled order of malonylCoA, malonyl-CoA, and methylmalonyl-CoA to produce alkylresorcinols. An srsA mutant, which produced no phenolic lipids, was highly sensitive to -lactam antibiotics, such as penicillin G and cephalexin. Together with the fact that the alkylresorcinols were fractionated mainly in the cell wall fraction, this observation suggests that the phenolic lipids, perhaps associated with the cytoplasmic membrane because of their amphiphilic property, affect the characteristic and rigidity of the cytoplasmic membrane/peptidoglycan of a variety of bacteria. An srs-like operon is found widely among Gram-positive and -negative bacteria, indicating wide distribution of the phenolic lipids.Type III PKSs 2 are structurally and functionally simple PKSs that catalyze the synthesis of aromatic polyketides in both plants and microorganisms (1). We previously found that a type III PKS, RppA, in the Gram-positive, filamentous bacterium Streptomyces griseus catalyzes the synthesis of 1,3,6,8-tetrahydroxynaphthalene by using malonyl-CoA as a starter, carrying out four successive extensions with malonyl-CoA and cyclizing the resulting pentaketide to the naphthalene scaffold (2). This was the first report of a functional type III PKS from bacteria. Since then, genome projects of bacteria have predicted that type III PKSs are distributed widely not only in Streptomyces but also other various bacteria. For example, ArsB and ArsC, both of which are type III PKSs in Azotobacter vinelandii, catalyze the synthesis of alkylresorcinols and alkylpyrones, respectively, which are essential for encystment as the major lipids in the cyst membrane (3).We have recently completed the genome project for S. griseus 3 and found another gene encoding a type III PKS, in addition to RppA. This type III PKS was named SrsA (Streptomyces resorcinol synthesis) because of its ability to synthesize alkylresorcinols in a unique manner (see below). SrsA, showing 31% amino acid sequence identity to RppA, appeared to be a member of the proteins whose synth...