During zebrafish development, zygotic gene expression initiated at the midb
lastula transition converts maternal information on embryo polarity into a
transcriptional read-out. Expression of a homeobox gene, vega1, is activate
d at midblastula transition in all blastomeres, but is down-regulated dorsa
lly before gastrulation. Ubiquitous expression of vega1 is maintained in bo
zozok mutants, in which the dorsal-specific homeobox gene bozorok/dharma (b
oz/dha) is disrupted and organizer formation is impaired. Vega1 inhibits ex
pression of boz/dha and organizer-specific genes, and causes ventralization
resulting in a headless phenotype. In contrast, VP16-vega1, a fusion inclu
ding the Vega1 homeodomain and VP16 activation domain, elicits ectopic expr
ession of organizer genes and suppresses several aspects of the boz mutant
phenotype. We propose that boz/dha-dependent down-regulation of vega1 in th
e dorsal region is an early essential step in organizer formation in zebraf
ish.