The development of distinct vertebrate neurons is defined by the unique pro
files of genes that neurons express. It is accepted that neural genes are r
egulated at the point of transcription initiation, but the role of messenge
r RNA elongation in neural gene regulation has not been examined(1-3). Here
we describe the mutant foggy, identified in a genetic screen for mutations
that affect neuronal development in zebrafish(4), that displayed a reducti
on of dopamine-containing neurons and a corresponding surplus of serotonin-
containing neurons in the hypothalamus. Positional cloning disclosed that F
oggy is a brain-enriched nuclear protein that is structurally related to th
e transcription elongation factor Spt5 (refs 5-12). Foggy is not part of th
e basic transcription apparatus but a phosphorylation-dependent, dual regul
ator of transcription elongation. The mutation disrupts its repressive but
not its stimulatory activity. Our results provide molecular, genetic and bi
ochemical evidence that negative regulators of transcription elongation con
trol key aspects of neuronal development.