Fringe encodes a glycosyltransferase that modulates the ability of the Notc
h receptor to be activated by its ligands. We describe studies of fringe fu
nction during early stages of Drosophila oogenesis. Animals mutant for hypo
morphic alleles of fringe contain follicles with an incorrect number of ger
mline cells, which are separated by abnormally long and disorganized stalks
. Analysis of clones of somatic cells mutant for a null allele of fringe lo
calizes the requirement for fringed in follicle formation to the polar cell
s, and demonstrates that fringe is required for polar cell fate. Clones of
cells mutant for Notch also lack polar cells and the requirement for Notch
in follicle formation appears to map to the polar cells. Ectopic expression
of fringe or of an activated form of Notch can generate an extra polar cel
l. Our results indicate that fringe plays a key role in positioning Notch a
ctivation during early oogenesis, and establish a function for the polar ce
lls in separating germline cysts into individual follicles.