Ubiquitin is a highly conserved polypeptide found in all eukaryotes. The major function of ubiquitin is to target proteins for complete or partial degradation by a multisubunit protein complex called the proteasome. Here, the Drosophila fat facets gene, which is required for the appropriate determination of particular cells in the fly eye, was shown to encode a ubiquitin-specific protease (Ubp), an enzyme that cleaves ubiquitin from ubiquitin-protein conjugates. The Fat facets protein (FAF) acts as a regulatory Ubp that prevents degradation of its substrate by the proteasome. Flies bearing fat facets gene mutations were used to show that a Ubp is cell type--and substrate-specific and a regulator of cell fate decisions in a multicellular organism.

In a screen for mutations affecting Drosophila eye development, we have identified a gene called fat facets (faf) which is required for cell interactions that prevent particular cells in the developing eye from becoming photoreceptors. Analysis of eyes mosaic for faf+ and faf- cells shows that faf is required in cells near to, but outside, normal developing photoreceptors and also outside of the ectopic photoreceptors in mutant facets. faf is also essential during oogenesis, and we show that a faf-lacZ hybrid protein is localized via the first 392 amino acids of faf to the posterior pole of oocytes. Posterior localization of faf-lacZ depends on oskar. oskar encodes a key organizer of the pole plasm, a specialized cytoplasm at the posterior pole of embryos. The pole plasm is required for germ cell formation and contains the determinant of posterior polarity, encoded by nanos. Although other pole plasm components are required for localization of nanos RNA or for nanos protein function, faf is not. We have cloned the faf gene, and have shown that it encodes two similar large (approximately 300 × 10(3) M(r)) proteins that are unique with respect to other known proteins.

Morphogenesis of a multicellular structure requires not only that cells are specified to express particular gene products, but also that cells move to adopt characteristic shapes and positions. Little is known about how these two aspects of morphogenesis are coordinated. The developing Drosophila compound eye is a monolayer, in which cells are suspended between apical and basal membranes and assemble sequentially into hundreds of unit eyes, or facets, guided by a series of cell interactions. As cells are determined to join the facet, their nuclei and cell bodies rise apically and then settle into position in the cell group. The final nuclear positions determine the shape of the individual cells. We have identified a Drosophila gene called marbles which is required for the apical nuclear migrations that accompany cell determination during eye development. In marbles mutant eyes, the sequence of cell specification that leads to the formation of facets occurs almost normally despite the failure of nuclear migration in many cells. The marbles mutant phenotype reveals that during Drosophila eye development cell determination does not require nuclear migration.

The Drosophila compound eye develops by a complex series of cell interactions where multiple positive and inhibitory cues guide cells in each facet into their positions and fates. The results of many genetic and molecular experiments have led to the view that facet assembly is directed by cells within developing ommatidial preclusters. Here fat facets mutants and the cloned fat facets gene were used to show that, in order to limit the number of photoreceptors in a facet to eight, undifferentiated cells surrounding assembling facets send an inhibitory signal to extraneous cells within the facet preclusters. Generation of the inhibitory signal requires the ubiquitin-specific protease encoded by the fat facets gene and is thus regulated by ubiquitin-dependent proteolysis.