In general, aflatoxin production by Aspergillus flavus and A. parasiticus was greatly reduced in vitro in the presence of the insecticide dichlorvos. Reduction in yield of the toxins was accompanied by the apperance of a previously unidentified orange pigment. Spectral analyses of the pigment and of its methylated and acetylated derivatives indicated the compound to be versiconal acetate (IV). The data suggest that IV is an intermediate in the metabolic cycle that may terminate in the production of aflatoxin or of the versicolorins, or both. Dichlorvos apparently inhibits biosynthesis of the difurano ring structure common to the aflatoxins and the versicolorins.