Glia calcium signaling has recently been identified as a potent modulator of synaptic transmission. We show here that the spatial expansion of calcium waves is mediated by ATP and subsequent activation of purinergic receptors. Ectopic expression of gap junction proteins, connexins (Cxs), leads to an increase in both ATP release and the radius of calcium wave propagation. Cx expression was also associated with a phenotypic transformation, and cortical neurons extended longer neurites when co-cultured with Cx-expressing than with Cxdeficient cells. Purinergic receptor activation mediated both these effects, because treatment with receptor antagonists restored the glia phenotype and slowed neurite outgrowth. These results identify a key role of ATP in both short-term calcium signaling events and in long-term differentiation regulated by glia. (Cornell-Bell et al., 1990;Charles et al., 1991). Astrocytic calcium signaling is transmitted to neurons (Nedergaard, 1994;Parpura et al., 1994;Hassinger et al., 1995), and recent reports have confirmed a direct role of astrocytes in modulating synaptic transmission. Astrocytic calcium signaling reduced the magnitude of action potential-evoked EPSCs and IPSCs in cultures (Araque et al., 1998a,b), modulated light-evoked spike activity of ganglion cells in intact retina (Newman and Zahs, 1998), and potentiated inhibitory synaptic transmission between synaptically coupled pairs of interneurons and CA1 pyramidal cells (Kang et al., 1998).Originally, it was debated to which extent astrocyte-to-neuron signaling was mediated by gap junctions (Nedergaard, 1994), by release of extracellular glutamate (Parpura et al., 1994), or by a combination of both mechanisms (Charles, 1994;Smith, 1994). Gap junctions connecting astrocytes and neurons have been identified by electron microscopy in brain (Morales and Duncan, 1974;Nadarajah et al., 1996), and functional gap junctions have been visualized by diffusion of permeable tracers from neurons to astrocytes in cultures (Fróes et al., 1999). On the other hand, glutamate is released from astrocytes in a Ca 2ϩ -dependent manner, and astrocyte-to-neuron signaling is sensitive to glutamate receptor antagonists (Araque et al., 1998a,b;Bezzi et al., 1998). Thus, both connexin-and glutamate-mediated pathways may contribute to astrocyte-to-neuron signaling. These discussions were, however, based on the assumption that astrocytic calcium waves are propagated by diffusion of intracellular messengers, such as Ca 2ϩ and IP 3 , across gap junctions. Very recently it has been demonstrated that astrocytic calcium waves are mediated by extracellular ATP and subsequent activation of purinergic receptors (Cotrina et al., 1998b;Guthrie et al., 1999). Accordingly, intercellular calcium signaling does not appear to require physical contact or formation of functional gap junctions (Hassinger et al., 1996). It is at present not established whether ATP participates in glial-neuronal communication or what role connexin (Cx) expression plays in propagating versus receiv...