In many organisms, early germline development takes place within cysts of i
nterconnected cells that form by incomplete cytokinesis and later undergo p
rogrammed breakdown. We recently identified similar cell clusters within th
e fetal mouse ovary, but the fate and functional significance of these germ
cell cysts remained unclear. Here, we show that mouse cysts undergo progra
mmed breakdown between 20.5-22.5 dpc, during which approximately 33% of the
oocytes survive to form primordial follicles. This process accounts for mo
st of the perinatal reduction in germ cell numbers and germ cell apoptosis
reported by previous authors, and suggests that perinatal germ cell loss is
a developmentally regulated process that is distinct from the follicular a
tresia that occurs during adult life. Our observations also suggest a novel
function for a transient cyst stage of germ cell development. Prior to bre
akdown, mitochondria and ER reorganize into perinuclear aggregates, and can
be seen within the ring canals joining adjacent germ cells. Cysts may ensu
re that oocytes destined to form primordial follicles acquire populations o
f functional mitochondria, through an active process that has been evolutio
narily conserved. (C) 2001 Academic Press.