Heterochromatic position-effect variegation (PEV) describes the mosaic
phenotype of a euchromatic gene placed next to heterochromatin. Heter
ochromatin-mediated silencing has been studied extensively in Drosophi
la, but the lack of a ubiquitous reporter gene detectable at any stage
has prevented a direct developmental characterization of this phenome
non, Current models attribute variegation to the establishment of a he
ritable silent state in a subset of the cells and invoke differences i
n the timing of silencing to explain differences in the patch size of
various mosaic patterns, In order to follow the course of heterochroma
tic silencing directly, we have generated Drosophila lines variegating
for a lacZ reporter that can be induced in virtually all cells at any
developmental stage. Our data indicate that silencing begins in embry
ogenesis and persists in both somatic and germline lineages. A heterog
eneity in the extent of silencing is also revealed; silencing is suppr
essed in differentiated tissues but remains widespread in larval imagi
nal discs containing precursor cells for adult structures, Using eye d
evelopment as an example, we propose that the mosaic phenotype is dete
rmined during differentiation by a variegated relaxation in heterochro
matic silencing. Though unpredicted by prevailing models, this mechani
sm is evident in other analogous systems.