We present a novel and efficient method for performing free energy cal
culations. Treating the conventional lambda variables associated with
the ''progress'' in the chemical coordinates dynamically, our approach
transforms free energy calculations into calculating potentials of me
an force in the lambda-space with molecular dynamics. This extended Ha
miltonian formalism utilizes the full power of umbrella sampling techn
iques and the weighted histogram analysis method. Applications to free
energies of hydration and a model illustrating competitive binding ca
lculations are presented. These calculations demonstrate the robustnes
s and flexibility of the new lambda-dynamics approach. (C) 1996 Americ
an Institute of Physics.