Secreted morphogens such as the Drosophila TGF-beta homolog Decapentaplegic
(Dpp) are thought to spread through target tissues and form long-range con
centration gradients providing positional information. Using a GFP-Dpp fusi
on, we monitored a TGF-beta family member trafficking in situ throughout th
e target tissue and forming a long-range concentration gradient. Evidence i
s presented that long-range Dpp movement involves Dpp receptor and Dynamin
functions. We also show that the rates of endocytic trafficking and degrada
tion determine Dpp signaling range. We propose a model where the gradient i
s formed via intracellular trafficking initiated by receptor-mediated endoc
ytosis of the ligand in receiving cells with the gradient slope controlled
by endocytic sorting of Dpp toward recycling versus degradation.