DNA hybridization studies were conducted to determine the taxonomic status of the aquatic group of Metschnikowia species and their varieties. Among the DNAs of the four varieties of Metschnikowia bicuspidata, that of Metschnikowia bicuspidata var. australis showed 37 to 51% relative binding with the DNAs of Metschnikowia bicuspidata var. bicuspidata and of the varieties chathamia and californica. On this basis, low intervarietal fertility, and unique habitat in antarctic seawater, we have proposed to raise M. bicuspidata var. australis to the rank of species, Metschnikowia australis, comb. nov. DNA complementarity of Metschnikowia bicuspidata var. californica and Metschnikowia bicuspidata var. chathamia DNA was greater than 80% with that of M. bicuspidata var. bicuspidata. Metschnikowia australis can be differentiated from other Metschnikowia species and varieties by its inability to form chlamydospores, the formation of two needle-shaped ascospores per ascus, lack of glucose fermentation, and lack of assimilation of both methyl-alpha-D-glucoside and glucono-delta-lactone. Other DNA-DNA reassociation experiments showed that Metschnikowia zobellii is a distinct species when compared with both aquatic and terrestrial species of the genus.