The vertebrate zinc finger genes of the Gli family are homologs of the
Drosophila gene cubitus interruptus. In frog embryos, Gli1 is express
ed transiently in the prospective floor plate during gastrulation and
in cells lateral to the midline during late gastrula and neurula stage
s. In contrast, Gli2 and Gli3 are absent from the neural plate midline
with Gli2 expressed widely and Gli3 in a graded fashion with highest
levels in lateral regions. In mouse embryos, the three Gli genes show
a similar pattern of expression in the neural tube but are coexpressed
throughout the early neural plate. Because Gli1 is the only Gli gene
expressed in prospective floor plate cells of frog embryos, we have in
vestigated a possible involvement of this gene in ventral neural tube
development. Here we show that Shh signaling activates Gli1 transcript
ion and that widespread expression of endogenous frog or human glioma
Gli1, but not Gli3, in developing frog embryos results in the ectopic
differentiation of floor plate cells and ventral neurons within the ne
ural tube. Floor-plate-inducing ability is retained when cytoplasmic G
li1 proteins are forced into the nucleus or are fused to the VP16 tran
sactivating domain. Thus, our results identify Gli1 as a midline targe
t of Shh and suggest that it mediates the induction of floor plate cel
ls and ventral neurons by Shh acting as a transcriptional regulator.