We study the heterotic string compactified on K3 × T 2 near the line T = U, where the effective action becomes singular due to an SU(2) gauge symmetry enhancement. By 'integrating in' the light W ± vector multiplets we derive a quantum corrected effective action which is manifestly SU(2) invariant and non-singular. This effective action is found to be consistent with a residual SL(2, Z) quantum symmetry on the line T = U. In an appropriate decompactification limit, we recover the known SU(2) invariant action in five dimensions.