Certain female-sterile mutations in Drosophila result in the uncontrol
led proliferation of X/X germ cells. It has been proposed that this ov
arian tumor phenotype results from the sexual transformation of X/X ge
rm cells to a male identity. We present findings inconsistent with thi
s model. We demonstrate that the tumorous cells produced by mutations
in the ovarian tumor (otu), Sex-lethal (Sxl) and sans fille (snf) gene
s are capable of female-specific transcription and RNA processing. Thi
s indicates that these ovarian tumor cells still retain some female id
entity. Therefore, we propose that mutations in these genes do not cau
se a male transformation of the X/X germ line but instead either cause
an ambiguous sexual identity or block specific stages of oogenesis. O
ur findings indicate that while Sxl is the master sex determination ge
ne in somatic cells, it appears to play a more subsidiary role in the
germ line. Finally, we demonstrate that the germ line function of Sxl
depends on the activity of a specific OTU isoform.