,B-Lactam compounds account for more than 60% of worldwide consumption of antibiotics as a result of the high selectivity, low toxicity, and versatility of these compounds. However, the chemotherapeutic application of ,-lactam antibiotics has been continually threatened by the development of bacterial resistance. The most common mechanism of resistance among both gram-positive and gram-negative bacteria involves the production of 3-lactamases, enzymes which cleave the p-lactam ring. The fact that some ,Blactamases are encoded on transferable plasmids or transposable elements has contributed substantially to the incidence of clinically significant P-lactam resistance (12). While chemical modification has helped to improve the resistance of the naturally occurring P-lactam antibiotics to cleavage, the need for further improvement resulted in an effort to find useful ,-lactamase inhibitors. Several effective, mechanismbased, low-molecular-weight P-lactamase inhibitors have been developed, but only clavulanic acid, a clavam-type P-lactam compound, has been used clinically (33). Clavulanic acid is one of several P-lactam compounds produced by Streptomyces clavuligerus, a filamentous gram-positive bacterium which also produces penicillin N, desacetoxycephalosporin C, and cephamycin C (28). The significance of the production of ,-lactamase inhibitors to S. clavuligerus is unclear, but this is also true of the production of ,-lactam antibiotics. No consensus exists as to how antibiotic-producing organisms benefit from the production of antibiotics (1,14). Although the majority of Streptomyces species produce ,-lactamases (43) (Preliminary results of this study were presented at the