Gram-positive bacteria of the genus
Streptomyces
are industrially important microorganisms, producing >70% of commercially important antibiotics. The production of these compounds is often regulated by low-molecular-weight bacterial hormones called autoregulators. Although 60% of
Streptomyces
strains may use γ-butyrolactone–type molecules as autoregulators and some use furan-type molecules, little is known about the signaling molecules used to regulate antibiotic production in many other members of this genus. Here, we purified a signaling molecule (avenolide) from
Streptomyces avermitilis
—the producer of the important anthelmintic agent avermectin with annual world sales of $850 million—and determined its structure, including stereochemistry, by spectroscopic analysis and chemical synthesis as (4
S
,10
R
)-10-hydroxy-10-methyl-9-oxo-dodec-2-en-1,4-olide, a class of
Streptomyces
autoregulator. Avenolide is essential for eliciting avermectin production and is effective at nanomolar concentrations with a minimum effective concentration of 4 nM. The
aco
gene of
S. avermitilis,
which encodes an acyl-CoA oxidase, is required for avenolide biosynthesis, and homologs are also present in
Streptomyces fradiae
,
Streptomyces ghanaensis
, and
Streptomyces griseoauranticus
, suggesting that butenolide-type autoregulators may represent a widespread and another class of
Streptomyces
autoregulator involved in regulating antibiotic production.