The development and differentiation of the epithelial component of gla
ndular tissues such as the breast is regulated by two apparently unrel
ated processes. One of these is presumed to be epithelial cell collect
ive autonomous, that is, it is mediated by gene products which act dir
ectly on the epithelial cells. An important component of autonomous re
gulation is the functional expression of homotypic cell-cell adhesion
molecules such as cadherins. The second process is non-autonomous and
involves an inductive effect of the neighboring mesenchymal cell colle
ctive. An important component of non-autonomous regulation is the aggr
egation/condensation of mesenchyme closely associated with the epithel
ium. We propose that molecular alterations in autonomous and non-auton
omous pathways are important causes and indicators respectively of bre
ast cancer progression and that these two fundamental regulators of ep
ithelial collective organization are in fact inter-dependent. For exam
ple, we show that the expression of hepatocyte growth factor (HGF), an
epithelially targeted mesenchymally derived morphogenic factor is reg
ulated by mesenchymal cell density (condensation) and by factors relea
sed from epithelial cells. Breast epithelial cells produce factors whi
ch inhibit and stimulate HGF expression. The inhibitory factor is tran
sforming growth factor beta (TGF-beta) and the activation state of TGF
-beta is a crucial element in HGF homeostasis. The balance of negative
and positive HGF regulators is markedly affected by the growth condit
ions and differentiation state of the epithelial cells. The expression
of the HGF receptor, met, is high in normal breast epithelial cells a
nd in dedifferentiated (ER negative) tumor cells but is reduced or los
t in ER positive well differentiated epithelial cells. Our results ind
icate that the expression of at least one epithelial morphogen, HGF, i
s inter-dependently regulated by mesenchymal condensation and by facto
rs released by neighboring epithelial cells.