The Iroquois genes code for homeodomain proteins that have been implicated
in the neural development of Drosophila and vertebrates. We show here for t
he first time that Xiro-1, one of the Xenopus Iroquois genes, is expressed
in the Spemann organizer from the start of gastrulation and that its overex
pression induces a secondary axis as well as the ectopic expression of seve
ral organizer genes, such as chordin, goosecoid, and Xlim-1. Our results al
so indicate that Xiro-1 normally functions as a transcriptional repressor i
n the mesoderm. Overexpression of Xiro-1 or a chimeric form fused to the re
pressor domain of Engrailed cause similar phenotypes while overexpression o
f functional derivatives of Xiro-1 fused with transactivation domains (VP16
or E1A) produce the opposite effects. Finally, we show that Xiro-1 works a
s a repressor of bmp-4 transcription and that its effect on organizer devel
opment is dependent on BMP-4 activity. We propose that the previously obser
ved down regulation of bmp-4 in the dorsal mesoderm during gastrulation can
be explained by the repressor activity of Xiro-1 described here. Thus, Xir
o-1 seems to have at least two different functions: control of neural plate
and organizer development, both of which could be mediated by repression o
f bmp-4 transcription. (C) 2001 Wiley-Liss, Inc.