Disruption of eshA, which encodes a 52-kDa protein that is produced late during the growth of Streptomyces coelicolor A3(2), resulted in elimination of actinorhodin production. In contrast, disruption of eshB, a close homologue of eshA, had no effect on antibiotic production. The eshA disruptant accumulated lower levels of ppGpp than the wild-type strain accumulated. The loss of actinorhodin production in the eshA disruptant was restored by expression of a truncated relA gene, which increased the ppGpp level to the level in the wild-type strain, indicating that the reduced ppGpp accumulation in the eshA mutant was solely responsible for the loss of antibiotic production. Antibiotic production was also restored in the eshA mutant by introducing mutations into rpoB (encoding the RNA polymerase  subunit) that bypassed the requirement for ppGpp, which is consistent with a role for EshA in modulating ppGpp levels. EshA contains a cyclic nucleotide-binding domain that is essential for its role in triggering actinorhodin production. EshA may provide new insights and opportunities to unravel the molecular signaling events that occur during physiological differentiation in streptomycetes.One of the most intriguing challenges in biology today is elucidation of the mechanisms by which cells detect and respond to extracellular nutritional conditions. Among the prokaryotes, Bacillus subtilis and Streptomyces spp. provide tractable experimental systems for studying such mechanisms because they exhibit a wide range of adaptations to extreme nutrient limitation, including the production and secretion of antibiotics and enzymes and the formation of aerial mycelium (Streptomyces spp.) and endospores (Bacillus spp.) (12). Nutritional status and sporulation have been successfully linked in B. subtilis (45), in which CodY detects and responds to nutrient limitation by monitoring the level of the intracellular GTP pool as an overall indicator of cellular physiology. Recent work by Inaoka and Ochi (20) supported this proposal. The stringent response, a general and ubiquitous response to nutrient limitation in prokaryotes, plays a central role in responding to nutrient stress, mediating its effect through the nucleotide guanosine 5Ј-diphosphate 3Ј-diphosphate (ppGpp) (5). By analyzing mutants with impaired abilities to elicit the stringent response, we have shown that ppGpp plays a role in triggering the onset of antibiotic production in both B. subtilis (21) and Streptomyces spp. (6,7,15,29,37,39,41,52,55), whereas morphological differentiation is triggered by reduced levels of GTP. Streptomycetes are gram-positive, filamentous soil bacteria that have a complex process of morphological differentiation and the ability to produce a wide variety of secondary metabolites (referred to as physiological differentiation) that include antibiotics and other useful medicinal compounds. Morphological differentiation and physiological differentiation in streptomycetes often coincide and occur in response to environmental signals that include nutr...