The vertebrate organizer can induce a complete body axis when transplanted
to the ventral side of a host embryo(1) by virtue of its distinct head and
trunk inducing properties. Wingless/Wnt antagonists secreted by the organiz
er have been identified as head inducers(2-4). Their ectopic expression can
promote head formation, whereas ectopic activation of Wnt signalling durin
g early gastrulation blocks head formation(5-7). These observations suggest
that the ability of head inducers to inhibit Wnt signalling during formati
on of anterior structures is what distinguishes them from trunk inducers th
at permit the operation of posteriorizing Wnt signals(8). Here we describe
the zebrarsh headless (hdl) mutant and show that its severe head defects ar
e due to a mutation in T-cell factor-3 (Tcf3), a member of the Tcf/Lef fami
ly(9,10). Loss of Tcf3 function in the hdl mutant reveals that hdl represse
s Wnt target genes. We provide genetic evidence that a component of the Wnt
signalling pathway is essential in vertebrate head formation and patternin
g.