The bi-Hamiltonian structure of an integrable dynamical system introdu
ced by Melnikov is studied. This equation arises as a symmetry constra
int of the KP hierarchy via squared eigenfunctions and can be understo
od as a Boussinesq system with a source. The standard linear and quadr
atic Poisson brackets associated with the space of pseudo-differential
symbols are used to derive two compatible Hamiltonian operators. A bi
-Hamiltonian formulation for the Drinfeld-Sokolov system is derived vi
a reduction techniques.