Spontaneous or evoked brain activity in the hippocampus showed a 20-70 Hz beta rhythm under some conditions, typically during behavioral activation and accompanied by a theta rhythm. Beta rhythms are generated locally, perhaps by a recurrent feedback loop involving pyramidal cells and inhibitory interneurons. Modulation of the local circuit and rhythm by cholinergic inputs has also been demonstrated. Under some behavioral states, neural impulses modulated at the beta frequency may transmit preferentially through the trisynaptic circuit in the hippocampus. It is suggested that the beta rhythm may serve to establish transient physiological connections, reflected in coherence at the beta frequency, among neurons in the hippocampus and related structures. Thus, the beta rhythm may play an essential role in hippocampal function.