Resorcylic acid lactones are fungal polyketides that display diverse biological activities, with the potent Hsp90 inhibitor radicicol being an important representative member. Two fungal iterative polyketide synthases (IPKSs), Rdc5, the highly reducing IPKS, and Rdc1, the nonreducing IPKS, are required for the biosynthesis of radicicol in Pochonia chlamydosporia. In this study, the complete reconstitution of Rdc5 and Rdc1 activities both in vitro and in Saccharomyces cerevisiae uncov- Polyketides of fungal origin represent an important family of natural products that display a wide range of biological activities (1, 2). One structurally distinct group of fungal polyketides is the resorcylic acid lactones (RALs) 4 (Fig. 1A), of which several members have clinically relevant bioactivities (3, 4). A well known RAL is radicicol (1) (Fig. 1), which is a nanomolar (IC 50 ϭ 20 nM) inhibitor of the heat shock protein 90 (Hsp90) (5, 6). Hsp90 chaperones the maturation of a wide range of oncogenic proteins (7) and is therefore an attractive target for anticancer drug development. Radicicol inhibits the ATPase activity of Hsp90 via competitive binding to the ADP/ ATP binding pocket, leading to the inactivation of Hsp90 chaperoning ability (8). Despite the highly potent activity, radicicol has not been developed as a drug due to its poor activity in vivo. Radicicol can be readily inactivated through attack at the strained C7Ј-C8Ј epoxide, as well as facile Michael addition at C6Ј facilitated by the conjugated dienone (9). To overcome these limitations, chemically derived radicicol analogs that do not contain these labile moieties have been pursued (10 -13). Recently, C2Ј oxime derivatives of (R)-monocillin II (6) and pochonin D (11) (Fig. 1B) screened from a chemically synthesized library showed greatly enhanced in vivo activity (14). A phosphate prodrug strategy was developed based on a lead compound to further increase the oral bioavailability (15). These promising results suggest that the radicicol-based RAL scaffold remains an attractive starting point for development of Hsp90 inhibitors, and this prompted us to examine the biosynthesis of the compound in detail.Like other RALs studied to date, such as hypothemycin (2) (16, 17) and zearalenone (4) (Fig. 1A) (18, 19), the carbon scaffold of radicicol is synthesized by the collaborative functions of two type I iterative polyketide synthases (IPKSs). IPKSs are megasynthases in which linearly juxtaposed catalytic domains function in an iterative and a highly programmed fashion (20). Genetic knock-out experiments with two different radicicol-producing fungi, Pochonia chlamydosporia and Chaetomium chiversii (16,21), confirmed that a highly reducing PKS (HRPKS) and a nonreducing PKS (NRPKS) are required for the biosynthesis of radicicol. The domain structures and putative functions of the two P. chlamydosporia PKSs are shown in Fig. 1B. The HRPKS Rdc5 contains the following domains: ketosynthase (KS) that performs the decarboxylative condensation; malonyl-CoA:ACP transacylase ...