Wingless (Wg) is an important signaling molecule in the development of
Drosophila, but little is known about its signal transduction pathway
. Genetic evidence indicates that another segment polarity gene, dishe
velled (dsh) is required for Wg signaling. We have recently developed
a cell culture system for Wg protein activity, and using this in vitro
system as well as intact Drosophila embryos, we have analyzed biochem
ical changes in the Dsh protein as a consequence of Wg signaling. We f
ind that Dsh is a phosphoprotein, normally present in the cytoplasm. W
g signaling generates a hyperphosphorylated form of Dsh, which is asso
ciated with a membrane fraction. Overexpressed Dsh becomes hyperphosph
orylated in the absence of extracellular Wg and increases levels of th
e Armadillo protein, thereby mimicking the Wg signal. A deletional ana
lysis of Dsh identifies several conserved domains essential for activi
ty, among which is a so-called GLGF/DHR motif. We conclude that dsh, a
highly conserved gene, is not merely a permissive factor in Wg signal
ing but encodes a novel signal transduction molecule, which may functi
on between the Wg receptor and more downstream signaling molecules.