We consider D = 6, N = 1, Z(M) orbifold compactifications of heterotic
strings in which the usual modular invariance constraints are violate
d. It is argued that in the presence of non-perturbative effects many
of these vacua are nevertheless consistent, The perturbative massless
sector can be computed explicitly from the perturbative mass formula s
ubject to an extra shift in the vacuum energy. This shift is associate
d to a non-trivial antisymmetric B-field flux at the orbifold fixed po
ints. The non-perturbative piece is given by five-branes either moving
in the bulk or stuck at the fixed points, giving rise to Coulomb phas
es with tensor multiplets. The heterotic duals of some type IIB orient
ifolds belong to this class of orbifold models, We also discuss how to
carry out this type of construction to the D = 4, N = 1 case and spec
ific Z(M) X Z(M) examples are presented in which non-perturbative tran
sitions changing the number of chiral generations do occur. (C) 1998 E
lsevier Science B.V.