Bone morphogenetic proteins (BMPs) have diverse and sometimes paradoxical e
ffects during embryonic development. To determine the mechanisms underlying
BMP actions, we analyzed the expression and function of two BMP receptors,
BMPR-IA and BMPR-IB, in neural precursor cells in vitro and in vivo. Neura
l precursor cells always express Bmpr-1a, but Bmpr-1b is not expressed unti
l embryonic day 9 and is restricted to the dorsal neural tube surrounding t
he source of BMP ligands. BMPR-IA activation induces (and Sonic hedgehog pr
events) expression of Rmpr-1b along with dorsal identity genes in precursor
cells and promotes their proliferation. When BMPR-IB is activated, it limi
ts precursor cell numbers by causing mitotic arrest. This results in apopto
sis in early gestation embryos and terminal differentiation in mid-gestatio
n embryos. Thus, BMP actions are first inducing (through BMPR-IA) and then
terminating (through BMPR-IB), based on the accumulation of BMPR-IB relativ
e to BMPR-IA. We describe a feed-forward mechanism to explain how the seque
ntial actions of these receptors control the production and fate of dorsal
precursor cells from neural stem cells.