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We report on the distribution and clustering of faint galaxies in approximately 20 HST Wide Field Camera images of random fields, taken as part of the Medium-Deep Survey Key Project. Limiting magnitudes in the V-band vary from 22 to 25, depending on the length of the exposure and the sky background; each image contains between several tens and a few hundred galaxies. The clustering is studied both by estimating the two-point correlation function and via a nearest-neighbor algorithm. Preliminary results indicate that up to 20\% of the galaxies may be in small groups containing 5--8 objects within a few hundred kpc, and a similar number are in pairs with separation not exceeding 30 kpc. The implications on the merging rate at moderate redshifts are discussed.
