Cell fate is determined by intrinsic programs and external cues, such as so
luble signals and cell-cell contact. Previous studies have demonstrated the
roles of soluble factors in the proliferation and differentiation of corti
cal stem cells and cell-cell contact in maintaining stem cells in a prolife
rative state. In the present study, we focused on the effect of cell-cell i
nteraction on cell-fate determination. We found that density could exert a
strong influence on the cell-type composition when cortical stem cells diff
erentiate. Multipotent stem cells, which normally gave rise to neurons, ast
rocytes, and oligodendrocytes under high-density culture condition, differe
ntiated almost exclusively into smooth muscle at low density. Clonal analys
is indicated that smooth muscle and astrocytes were derived from a common p
recursor and that the density effect on cell types used an instructive mech
anism on the choice of fate rather than an effect of selective survival and
/or proliferation. This instructive mechanism depended on the local and not
the average density of the cells. This local signal could be mimicked by m
embrane extract. These findings demonstrate the importance of membrane-boun
d signals in specifying lineage and provide the first evidence for a short-
range regulatory mechanism in cortical stem cell differentiation.