We analyze the origin of medium-range structural order in a simple monatomi
c liquid simulated by molecular dynamics. Convincing evidence is presented
that this structural order, manifested by a prepeak in the structure factor
, can be interpreted as chemical ordering in a mixture of atoms and atom-si
ze vacancies. It is concluded that the liquid is able to sustain the presen
ce of vacancies due to its predominantly icosahedral local order. The prese
nt result thus indicates that vacancy-induced medium-range order should be
a common feature of icosahedrally ordered simple liquids, e.g., simple meta
llic glass formers. [S0163-1829(99)08001-7].