Binding to D-Ala-D-Ala residues can lead to inhibition of transglycosylation and/or transpeptidation; these interactions in turn lead to bacterial growth inhibition (33). LY264826 (A82846B, chloroeremomycin, or chloroorienticin A) differs from vancomycin in having a 4-epi-vancosamine sugar substituted for vancosamine in the disaccharide attached at residue 4 and an additional 4-epi-vancosamine attached at residue 6 of the linear heptapeptide ( Fig. 1) (29). The antibacterial activity of LY264826 is approximately four-to eightfold greater than that of vancomycin (24,27,35). Several derivatives of LY264826 with N-substituted alkyl hydrophobic side chains on the 4-epi-vancosamine of the disaccharide sugar and exquisite antibacterial activities against both vancomycin-susceptible and -resistant bacteria have been described (12,25,27,28,34).Despite differences in antibacterial activities, vancomycin, LY264826, and the hydrophobic side chain derivatives of LY264826 and its derivatives (as well as some other members of the glycopeptide class) have a strong tendency to selfassociate and form homodimers (2,3,15,18). The extent of dimerization of LY264826 is approximately 2 orders of magnitude greater than that of vancomycin (2,15,22). The Nsubstituted derivatives of LY264826 are even more strongly dimerized, with the extent of dimerization apparently determined by the nature of the side chain (3). The N-substituted derivatives also demonstrate a greater tendency to interact with bacterial membranes, a process that could serve to anchor these agents at the in vivo target site (2,3,5,6,11,37). Our studies (3) revealed a relatively high degree of correlation between the extent of dimerization of glycopeptide antibiotics and antibacterial activity and a very high degree of correlation between antibacterial activity and the concentration of a DAla-D-Ala-containing tripeptide ligand needed in the growth medium to antagonize antibacterial activity. The antagonism experiments are particularly pertinent to the mechanisms of action of these glycopeptides because the results imply that growth inhibition is accompanied by stronger interactions with D-Ala-D-Ala-containing cell wall intermediates at the in vivo target site than with the D-Ala-D-Ala-containing tripeptide ligand in solution. The combined effect of dimerization and membrane anchoring can lead to cooperative interactions that facilitate strong intramolecular effects at the target site that can fully account for the enhanced antibacterial activities. These kinds of interactions are not predicted by estimating association constants in free solution. However, the contribution of intramolecular effects to the binding of glycopeptide antibiotics to D-Ala-D-Ala and D-Ala-D-Lac residues at the bacterial surface has been demonstrated by nuclear magnetic resonance and surface plasmon resonance techniques with a variety of model systems, namely, phosphatidylcholine vesicles * Corresponding author. Present address: 1481 E. 77th St., Indianapolis, IN 46240.