The Drosophila hedgehog (hh) gene encodes a secreted protein involved
in organizing growth and patterning in many developmental processes. H
h appears to act by inducing the localized expression of at least two
other signaling molecules, decapentaplegic (dpp) and wingless (wg), wh
ich then govern cell proliferation and patterning in surrounding tissu
e. Here, we demonstrate that cyclic AMP (cAMP)-dependent protein kinas
e A (PKA) is essential during limb development to prevent inappropriat
e dpp and wg expression. We also show that a constitutively active for
m of PKA can prevent inappropriate dpp and wg expression, but does not
interfere with their normal induction by hh. We propose that the basa
l activity of PKA imposes a block on the transcription of dpp and wg a
nd that hh exerts its organizing influence by alleviating this block.