Production of $poly-{eta}-hydroxybutyrate$ (PHB) in a strain of Azotobacter chroococcum, a nitrogen-fixing bacteria, was investigated at various levels of nitrogen and oxygen. Feeding nitrogen source increased both cell growth and PHB accumulation. Oxygen supply appeared to be one of the most important operating parameters for PHB production. Both cell growth and PHB accumulation increased with the sufficient supply of air in the fed-batch fermentation of the strain. However, it was also noted that keeping the oxygen level under limited condition was critical to achieve high PHB productivity. A high titer of PHB (52 g/l) with a high cellular content (60%) was obtained after 48 hr of fed-batch operation by controlling the oxygen supply. Dual limitation of nitrogen and oxygen did not further increase the PHB accumulation probably due to the greater demand for reducing power and ATP for nitrogen fixation.