Noble-rotted grapes are colonized by complex microbial populations. I isolated pigment-producing Metschnikowia strains from noble-rotted grapes that had antagonistic activity against filamentous fungi, yeasts, and bacteria. A red-maroon pigment was formed from a diffusible colorless precursor released by the cells into the medium. The conversion of the precursor required iron and could occur both in the cells (red colonies) and in the medium (red halos around colonies). The intensity of pigmentation was correlated with the intensity of the antimicrobial activity. Mutants that did not form pigment also lacked antifungal activity. Within the pigmented halos, conidia of the sensitive fungi did not germinate, and their hyphae did not grow and frequently lysed at the tips. Supplementation of the medium with iron reduced the size of the halos and the inhibition zones, while it increased the pigment accumulation by the colonies. The iron-binding agent tropolone had a similar effect, so I hypothesize that pigmented Metschnikowia isolates inhibit the growth of the sensitive microorganisms by pigment formation, which depletes the free iron in the medium. As the pigment is a large nondiffusible complex produced in the presence of both low and high concentrations of ferric ions, the proposed mechanism is different from the mechanisms operating in microbes that release siderophores into the environment for iron acquisition.The important problems for postharvest protection of fruit include the declining effectiveness of registered fungicides, public pressure to reduce fungicide use, and public demand for produce free of synthetic pesticides. One solution is to use microorganisms with antifungal effects as biocontrol agents to reduce or inhibit the rate of propagation of destructive fungi during storage. Antagonistic yeasts have received particular attention, as their activity usually does not depend on the production of antibiotics or other toxic secondary metabolites. For example, strains of Candida, Cryptococcus, Debaromyces, Metschnikowia, Pichia, Rhodotorula, Sporobolomyces, and Trichosporon all have been reported to inhibit postharvest decay of fruit due to their antifungal effects (6,18,36,38,40,44,50,52). The modes of action proposed for the inhibition process include competition for space and nutrients, parasitism, direct interaction with the pathogen, production of cell wall lytic enzymes, and induced resistance in the host tissue (for a review, see reference 47).Fruit-borne strains of Metschnikowia pulcherrima can be effective in protecting apples, peaches, and grapes against postharvest rot caused by Botrytis cinerea and other postharvest pathogens (14,36,48). The related species Metschnikowia fructicola is an effective biocontrol agent for postharvest diseases of grapes (25). M. pulcherrima, but not M. fructicola, produces a red pigment, pulcherrimin, that accumulates in the cells and in the medium near a colony (26,27). Pulcherrimin is a large complex formed nonenzymatically from a dibasic acid, pulcherriminic ac...