The pannier (pnr) gene encodes a GATA transcription factor and acts in seve
ral developmental processes in Drosophila, including embryonic dorsal closu
re, specification of cardiac cells and bristle determination. We show that
pnr is expressed in the mediodorsal parts of thoracic and abdominal segment
s of embryos, larvae and adult flies. Its activity confers cells with speci
fic adhesion properties that make them immiscible with non-expressing cells
. Thus there are two genetic domains in the dorsal region of each segment:
a medial (MED) region where pnr is expressed and a lateral (LAT) region whe
re it is not. The homeobox gene iroquois (iro) is expressed in the LAT regi
on. These regions are not formed by separate polyclones of cells, but are d
efined topographically. We show that ectopic pnr in the wing induces MED th
oracic development, indicating that pnr specifies the identity of the MED r
egions. Correspondingly, when pnr is removed from clones of cells in the ME
D domain, they sort out and apparently adopt the LAT fate. We propose that
(1) the subdivision into MED and LAT regions is a general feature of the Dr
osophila body plan and (2) pnr is the principal gene responsible for this s
ubdivision. We argue that pnr acts like a classical selector gene but diffe
rs in that its expression is not propagated through cell divisions.