The polyketide synthase (PKS)-like protein TerB, consisting of inactive dehydratase,i nactive C-methyltransferase,a nd functional ketoreductase domains collaborates with the iterative non reducing PKS TerA to produce 6-hydroxymellein, ak ey pathway intermediate during the biosynthesis of various fungal natural products.T he catalytically inactive dehydratase domain of TerB appears to mediate productive interactions with TerA, demonstrating an ew mode of transinteraction between iterative PKS components.Scheme 1. Summary of previous observations. Compounds in brackets were not isolated. See main text for abbreviations.