New type 2, 3-disubstituted pyridine lactones were prepared from 2-methylnicotinic acid. The lactones, 2-hydroxymethylnicotinic acid lactone and 2-hydroxymethylpyridine-3-acetic acid lactone, were reacted with various amines to form the corresponding lactams, and the lactams were reduced with lithium aluminium hydride, yielding pyrrolopyridine and 1, 7-naphthyridine derivatives which possessed a fair degree of hypotensive action.