The BMP-related ligand Decapentaplegic (Dpp) has a well-characterized role
in pattern formation during Drosophila embryogenesis and in larval developm
ent. Previous work has shown that transcription of Dpp-responsive genes req
uires the activity of the BMP-specific Smad, Mothers against dpp (Mad). In
this study we investigated the role of the zinc finger transcription factor
Schnurri (Shn) in mediating the nuclear response to Dpp during adult patte
rning. Using clonal analysis, we show that wing imaginal disc cells mutant
for shn fail to transcribe the genes spalt, optomotor blind vestigial, and
Dad, that are known to be induced by dpp signaling. shn clones also ectopic
ally express brinker, a gene that is downregulated in response to dpp, thus
implicating Shn in both activation and repression of Dpp target genes. We
demonstrate that loss of sim activity affects anterior-posterior patterning
and cell proliferation in the wing blade, in a manner that reflects the gr
aded requirement for Dpp in these processes, furthermore, we find that sim
is expressed in the pupal wing and plays a distinct role in mediating dpp-d
ependent vein differentiation at this stage. The absence of shn activity re
sults in defects that are similar in nature and severity to those caused by
elimination of Mad, suggesting that Shn has an essential role in dpp signa
l transduction in the developing wing. Our data are consistent with a model
in which Shn acts as a cofactor for Mad. (C) 2000 Academic Press.