A relatively small number of regulatory proteins perform multiple functions to orchestrate the development of an animal from a zygote. Many regulatory proteins are transcription factors that affect the expression of downstream genes. These factors interact with other proteins in the nucleus to regulate expression of their target genes. The main effect of loss-of-function mutations in genes encoding major regulators of development is lethality at the earliest stage where the regulatory molecule is required. Many, very important roles of regulatory factors have been inferred from these lethal phenotypes. However, the early lethality means that understanding the later roles, if any, of such genes becomes difficult. In addition, loss-offunction studies alone do not usually provide insights into the identity and role of interacting proteins critical for the final output of the regulatory signal.Till recently, much of the focus in genomic research was on understanding gene sequences and function. These studies showed that important regulatory proteins are highly conserved in sequence and, often, in function, in organisms as diverse as mice and worms. Thus, novel genes alone do not make one organism different from another. Instead, many findings have made it clear that the difference between species very likely arises from the function of regulatory sequences that determine the time and pattern of gene expression. These patterns of gene expression define a diversity of cellular functions during development, which in turn allows, again through regulation of gene expression and by epigenetic mechanisms, further refinement of the pathways of development in each organism (see Pennisi 2004 for example).The regulated expression of a gene is thus a consequence of a fine balance between two components: (i) trans-acting factors-these are transcription factors/regulatory proteins with specific affinity for each other and for target DNA sequences; and (ii) the targets of these factors or the cis-regulatory DNA which responds to the trans-acting factors by allowing or repressing gene expression. In other words, the binding of specific transcription factors to the combinatorial code of cis-regulatory elements brings about activation or repression of target genes (Arnone and Davidson, 1997, Ghazi andVijayRaghavan 2000).Researchers have found new and efficient ways to locate regulatory regions distributed in the genome. Enhancers-stretches of DNA that harbor cis-regulatory elements-have been identified for some years now in model organisms such as Drosophila by examining how these regulatory sequences affect reporter gene expression. These studies have rapidly deciphered different mechanisms by which transcription factors and other proteins interact with regulatory DNA and with each other to guide gene activity. Reporter studies of gene enhancers with precise alterations in putative binding sites for different transcription factors in an otherwise wild-type background answer questions on gene regulation at greater resolution. These s...