Megaspore germination and embryo development in Azolla filiculoides was examined using SEM and thin–sectioning. Within the released megaspore apparatus, resting cells of the endosymbiont Anabaena azollae Stras. arc located distally to the outside of the mcgasporangial wall and adhering to the inside of the megasporocarp wall. Growth of the female gametophyte displaces the floats pushing this part of the wall (the indusial cap) upwards, so providing access to the archegonia for the multifiagellalc spermalozoids. Embryo development and its inoculation with Anabaena involves a subtly–timed sequence of events resulting in the perpetuation of the symbiosis. Growth of the lunnel–shaped cotyledon leaf ruptures the mcgasporangial wall to provide access and a channelled route between the Anabaena and embryo shoot apex; subsequent leaf development severely restricts such access. During this process, the Anabaena is dislodged by the cotyledon leaf and growth of the first leaf traps the now actively–dividing Anabaena colonv; this becomes established around subapical trichomes from where filaments become incorporated into the cavities of developing leaves. The voung sporophyte rises vertically to the water surface as a result of gas accumulation in intercellular spaces; at no stage do floats endow buoyancy.
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