Transcriptional activation by, and therefore the physiologic impact of, act
ivated tyrosine-phosphorylated STATs (signal transducers and activators of
transcription) may be negatively regulated by proteins termed PIAS (protein
inhibitors of activated stats), as shown by previous experiments with mamm
alian cells in culture. Here, by using the genetic modifications in Drosoph
ila, we demonstrate the in vivo functional interaction of the Drosophila ho
mologues stat92E and a Drosophila PIAS gene (dpias). To this end we use a L
OF allele and conditionally overexpressed dpias in JAK-STAT pathway mutant
backgrounds. We conclude that the correct dpias/stat92E ratio is crucial fo
r blood cell and eye development.