The effect of carbon and nitrogen sources on the production of novel aminopeptidase M inhibitors MR-387A and B by Streptomyces sp. SL-387 has been studied. High D-glucose and ammonia concentrations (5$\%$/> and 1$\%$<TEX/>, respectively) exerted a negative influence on the inhibitor formation. The suppressive effect of glucose on the inhibitor formation is probably caused by an effect of medium pH rather than that of cyclic AMP. To establish the optimum conditions for inhibitor overproduction, various nitrogen sources and ammonium ion-trapping agents were examined. The use of ammonia slow-releasing nitrogen sources such as soybean meal and fish meal, or ammonium ion-trapping agents such as kaoline, celite, and natural zeolite achieved the enhancement of inhibitor production. These results also indicate that inhibitor formation is affected by ammonium ion repression.