In vertebrates, pattern formation in the eye, central nervous system,
somites, and limb depends on hedgehog activity, but a general target g
ene controlled by hedgehog in all these signaling centers has remained
largely elusive. The medaka fish gene spalt encodes a zinc-finger tra
nscription factor, which is expressed in all known hedgehog signaling
centers of the embryo and in the organizer region at the midbrain-hind
brain boundary. We show that the spalt expression domains expand in re
sponse to ectopic hedgehog activity and narrow in the presence of prot
ein kinase A activity, an antagonist of hedgehog signaling, indicating
that spalt is a hedgehog target gene. Our results also suggest a sign
aling mechanism for anterior-posterior patterning of the vertebrate br
ain that controls spalt expression at the midbrain-hindbrain boundary
in a protein kinase A dependent manner likely to involve an unknown me
mber of the hedgehog family.