The bodies of most teleost fish species are covered with specialized subepi
thelial structures known as scales. The scale is an epithelial appendage th
at differentiates from the dermal mesenchyme. Mammals, on the other hand, h
ave no scales, but instead their bodies are covered with hair. Although the
ir appearances are quite different, scales and hair can be considered struc
turally similar in that both of them are epithelial appendages distributed
over the body surface in an orderly pattern. This analogy suggests that the
y may have the same evolutionary origin. But, to date, no molecular evidenc
e has been presented that links scales and hair. A mutation at the rs-3 loc
us of medaka (Oryzias latipes) leads to almost complete loss of scales. We
demonstrated that the rs-3 locus encodes ectodysplasin-A receptor (EDAR), w
hich is required for the initiation of hair development in mammals. We iden
tified a novel transposon inserted in the first intron of EDAR, which cause
s aberrant splicing. This work shows that EDAR is required for scale develo
pment in fish and suggests that it is an evolutionarily conserved molecule
that is required for the development of epithelial appendages in vertebrate
s.