We have developed biocatalytic methods for the stereoselective reduction of cyclic prochiral 1,3diketones for the production of optically active β-hydroxyketones and/or 1,3-diols. The recombinant ketoreductase KRED1-Pglu (formulated as purified catalyst) and whole cells of wild type E. coli DE3 Star were used as biocatalysts, displaying different and sometimes complementary stereoselectivity, thus allowing the preparation of stereochemically pure β-hydroxyketones (12-66% isolated yields, >99% e.e.) and 1,3-diols (40-60% isolated yields, > 99% e.e.).