A new water-soluble, basic antibiotic has been isolated from the fermentation beers of Streptomyces gilvospiralis sp. nov. The structure of the antibiotic has been deduced from spectral studies and confirmed by chemical degradation to spectinomycin. This structure, 3'-O-methylspectinomycin-3',4'-enol ether has led to the name spenolimycin.