The complete absence of eyes in the medaka fish mutation eyeless is the res
ult of defective optic vesicle evagination. We show that the eyeless mutati
on is caused by an intronic insertion in the Rx3 homeobox gene resulting in
a transcriptional repression of the locus that is rescued by injection of
plasmid DNA containing the wild-type locus. Functional analysis reveals tha
t Six3- and Pax6- dependent retina determination does not require Rx3. Howe
ver, gain- and loss-of-function phenotypes show that Rx3 is indispensable t
o initiate optic vesicle evagination and to control vesicle proliferation,
by that regulating organ size. Thus, Rx3 acts at a key position coupling th
e determination with subsequent morphogenesis and differentiation of the de
veloping eye.