Abstract
Vellar Estuary was investigated as a source of actinomycetes to screen for production of novel bioactive compounds. The presence of relatively large populations of Streptomyces in Vellar Estuary soil samples indicates that it is an eminently suitable ecosystem for actinomycetes. Actinomycetes counts ranged 12 x 10(4) cfu/g of soil. The actinomycetes isolated from these ecosystems are capable of producing antibiotics that strongly inhibit the growth of Gram positive and Gram-negative bacteria and yeast like fungi. Further cultural and physiological characterization and DNA homology suggest that strain DPTD-5 is identical to Streptomyces bikiniensis.