During the development of vertebrate nervous system, distinct classes of mo
tor neurons and interneurons are generated at distinct dorsoventral positio
ns in the ventral neural tube. The differentiation of these neuronal subtyp
es is directed by the secreted protein Sonic Hedgehog (Shh). Shh acts in a
graded manner to establish different neural progenitor cell populations, de
fined by the expression of homeodomain transcription factors. These factors
are critical for the interpretation of graded Shh signalling and act initi
ally both to refine progenitor domain boundaries and to maintain their inte
grity. Subsequently, these factors direct the expression of genes that conf
er neuronal subtype identity to post-mitotic neurons.