Vertebrate skeletogenesis requires a well-coordinated transition from chond
rogenesis to osteogenesis. Hypertrophic chondrocytes in the growth plate pl
ay a pivotal role in this transition. Parathyroid hormone-related peptide (
PTHrP), synthesized in the periarticular growth plate, regulates the site a
t which hypertrophy occurs. By comparing PTH/PTHrP recepfor(-/-)/wild-type
(PPR-/-/wild-type) chimeric mice with Ihh(-/-);PPR-/-/wild-type chimeric an
d Ihh(-/-)/wild-type chimeric mice, we provide in vivo evidence that Indian
hedgehog(Ihh), synthesized by prehypertrophic and hypertrophic chondrocyte
s, regulates the site of hypertrophic differentiation by signaling to the p
eriarticular growth plate and also determines the site of hone collar forma
tion in the adjacent perichondrium. By providing crucial local signals from
prehypertrophic and hypertrophic chondrocytes to both chondrocytes and pre
osteoblasts, Ihh couples chondrogenesis to osteogenesis in endochondral bon
e development.