The layer-type compound, Ca0·85Sr0·15CuO2, which is the prototype of the cuprate family of high T c oxide superconductors is an electronic insulator, and has a low ordered moment at 300 K indicating that Cu2+ ions are highly correlated. Doping with lithium (up to x=0·15) decreases the room temperature resistivity drastically (from 103 ohm·cm to 0·6 ohm·cm) but metallic behaviour is not induced below 300 K. The magnetic moment on Cu2+ remains low but our studies did not show any antiferromagnetic ordering below 300 K in any of the Li-doped phases. © 1991 Indian Academy of Sciences.