The separation of cells into populations that do not intermix, termed compa
rtments, is a fundamental organizing principle during development(1-5). Dor
sal-ventral compartmentalization of the Drosophila wing is regulated downst
ream of the apterous (np) gene, which encodes a transcription factor that s
pecifies dorsal wing fate(6-8). fringe (fng) is normally expressed by dorsa
l cells downstream of ap(9); here we show that fng plays a key role in dors
al-ventral compartmentalization. Loss of fng function causes dorsal cells t
o violate the compartment boundary, and ectopic expression of the Fng prote
in causes ventral cells to violate the compartment boundary. Fng modulates
signalling through the Notch receptor(10,11). Notch and its ligands are ess
ential for formation of the dorsal-ventral compartment border, and repositi
oning the stripe of Notch activation that is normally established there app
ears to reposition the compartment border. However, activation of Notch doe
s not itself confer either dorsal or ventral cell location, and fng can inf
luence compartmentalization even within regions of ubiquitous Notch activat
ion. Our results indicate that the primary mechanism by which fng establish
es a compartment border is by positioning a stripe of Notch activation, but
also that fng may exert additional influences on compartmentalization.