Two DNA segments, dnrR1 and dnrR2, from the Streptomyces peucetius ATCC 29050 genome were identified by their ability to stimulate secondary metabolite production and resistance. When introduced into the wild-type ATCC 29050 strain, the 2.0-kb dnrR, segment caused a 10-fold overproduction of e-rhodomycinone, a key intermediate of daunorubicin biosynthesis, whereas the 1.9-kb dnrR2 segment increased production of both r-rhodomycinone and daunorubicin 10-and 2-fold, respectively. In addition, the dnrR2 segment restored high-level daunorubicin resistance to strain H6101, a daunorubicin-sensitive mutant of S. peucetius subsp. Knowledge about the genetics of secondary metabolism in Streptomyces spp. has grown rapidly since the reports 7 years ago that described the cloning of an apparent O-methyltransferase gene (11) and the entire cluster of actinorhodin production genes (33) from Streptomyces coelicolor. Although our understanding of the molecular biology of secondary metabolism has grown considerably in the ensuing years, one question stands out among the topics of current interest. How is the expression of antibiotic production genes regulated, both by genes that are linked to the structural and, commonly, self-resistance genes and by unlinked loci that could influence secondary metabolism indirectly? Information about this question is fundamentally important to understanding the genetics of temporally regulated processes in these filamentous soil bacteria (19) and should lead to ways to construct recombinant strains that overproduce valuable microbial metabolites (6).Insight into regulation by closely linked genes has been obtained from studies of mutations within the cluster of production genes that interfere with the functions of most or all of the other genes in this region. For instance, S. coelicolor actII strains do not produce actinorhodin and do not cosynthesize it with mutants that accumulate intermediates of actinorhodin biosynthesis (45), suggesting that the actII locus has a central role in actinorhodin production different from the role played by the structural and resistance genes (34). In contrast, studies of pleiotropic muta-* Corresponding author. tions have provided information about regulation by unlinked genes, since these mutations affect antibiotic production as well as other characteristics that are known to be developmentally regulated (5, 19), like the formation of aerial mycelia and spores. S. coelicolor bldA strains, for example, exhibit defects in the formation of aerial mycelia and antibiotics, leading to the belief that these properties are mediated by the bldA product in the wild-type strain via a novel type of translational control (31). The S. coelicolor afsR gene seems to bridge the actions of actII and bldA, since afsR can modulate the function of both the act and red clusters (and possibly A-factor production [22,24]) but has no proven role in development (25).The properties of the S. coelicolor actII-orf4 gene, recently described by , and the S. coelicolor redD-orfl gene (37)...