A major issue in development is to understand how local heterogeneitie
s are interpreted to determine specific cell fates. The sense organs o
f Drosophila provide an accessible system for addressing this issue. M
ost sense organs comprise four types of cells, and their differentiati
on is the outcome of a complex developmental programme comprising seve
ral steps. Recent results illuminate, for several of these steps, the
nature of the local heterogeneities and the mechanism used to interpre
t them in terms of cell fate decisions.