Hybridization of polyketide synthase genes from heterologous Streptomyces sp. led to the identification of four unlinked regions of DNA from Streptomycespeucetus that contain genes that encode the production of the same or dosely related metabolites, some of which are intermediates of the daunorubicin pathway. DNA fragments from each region that hybridized with the heterologous polyketide synthase genes were hybridized with each other, but very little sequence similarity was observed even though at least two of the regions have similar (if not identical) functions in metabolite production. Some regions, however, do have sequence similarity with other anthracycline-producing Streptomyces sp.The anthracycline antibiotics daunorubicin and doxorubicin are important antitumor drugs used in cancer chemotherapy even though they are cardiotoxic (1) and their production cost is high because ofthe complex mixture ofmetabolites that are produced during fermentation (2). Most of the research effort in investigating these problems has focused on traditional methods of large-scale screening, mutant construction, directed biosynthesis, and analog synthesis. While progress has been made, there has been little success in reducing toxicity or determining a definitive biosynthetic pathway. A solution to these problems may be found through studies in which molecular approaches are used to investigate the organization and regulation of the biosynthetic genes for the daunorubicin/doxorubicin antibiotic pathway. Developments in gene cloning technologies for Streptomyces have made it possible to clone antibiotic biosynthetic pathway genes from one organism and to transfer the entire region, or portions of it, into other suitable hosts (3, 4). In this manner, biosynthetic genes are being characterized, antibiotic resistance genes identified, and new "hybrid" antibiotics created (3-11). With the recent report on the existence of extensive homology between putative "polyketide synthase" genes in Streptomyces sp. (12), we developed a cloning strategy to identify such genes, which encode the earliest pathway enzymes of antibiotic production, in Streptomyces peucetius by DNA hybridization using Escherichia coli-Streptomyces shuttle cosmids as cloning vectors. We describe here the isolation, identification, and characteristics of four distinct nonoverlapping regions of DNA from S. peucetius that are involved in anthracycline metabolite production. At least one region contains a daunorubicin-resistance gene. Streptomyces strains were maintained on R2YE agar (18) and grown in R2YE liquid prior to chromosomal or plasmid DNA isolations and for preparing seed inoculum for fermentations. Streptomyces protoplasts were regenerated on R2YE agar. E. coli strains were maintained and grown in LB medium (19). For S. lividans strains transformed with the vectors pNJ1 or pKC505, thiostrepton (Thio) or apramycin (Am) were added at 50 or 100 Ag/ml, respectively. S. peucetius transformants were selected and maintained with Thio (25 ug/ml) or Am (25-50 ...