In this Account we describe recent advances in two ab initio electronic str
ucture methods, localized perturbation approaches and density functional th
eory, that allow accurate calculations including electron correlation to be
carried out for systems with hundreds of atoms. Application of these metho
ds to large-scale modeling of biological systems is discussed. Localized pe
rturbation methods are best suited to computation of conformational energet
ics and nonbonded interactions: determination of the relative energetics of
various conformations of the alanine tetrapetide is presented. Density fun
ctional theory is the method of choice for studying reactive chemistry; inv
estigations of the catalytic cycle of the enzyme methane monooxygenase are
reviewed.