Animal body plans require the specification of unique cell fates along two primary axes: anteroposterior (AP) and dorsoventral (DV). In addition, for those animals bearing appendages, a third, proximodistal (PD), axis must be generated orthogonal to the primary body axes. Studies in Drosophila have revealed many of the signals and pathways that control the formation of these three axes (reviewed by Morata, 2001). However, as many of the same pathways are used for forming all three of these axes, it remains unclear how they are uniquely specified. Moreover, once established, it is not understood how positional information is specified along an the PD axis of an appendage.In Drosophila, the appendages are derived from imaginal discs, sheets of epithelial cells that are patterned during larval development. Imaginal discs are divided into anterior (A) and posterior (P) compartments, groups of cells that are segregated from each other early in development (Lawrence and Morata, 1977). Compartment boundaries are sources of signaling molecules, morphogens, that provide positional information to the cells in the developing discs (Tabata and Takei, 2004). In the leg disc, Hedgehog (Hh) is expressed and secreted by cells of the P compartment, and induces the expression of two long-range signaling molecules, Decapentaplegic (Dpp) and Wingless (Wg), in A compartment cells that are adjacent to the AP compartment boundary. Hh activates dpp in the dorsal half of the leg disc and wg in the ventral half (Basler and Struhl, 1994). Once activated, the wg and dpp expression domains are maintained by a mutually antagonistic repression between them (Brook and Cohen, 1996;Jiang and Struhl, 1996;Johnston and Schubiger, 1996;Morimura et al., 1996;Penton and Hoffmann, 1996;Theisen et al., 1996). dpp is required to pattern the dorsal half of the leg (Morimura et al., 1996;Theisen et al., 1996), whereas wg is required to specify ventral leg fates (Couso et al., 1993;Johnston and Schubiger, 1996;Struhl and Basler, 1993;Wilder and Perrimon, 1995) (Fig. 1A). Thus, the DV axis of the leg is specified by these two opposing morphogens, probably by regulating unique sets of target genes in a concentration-dependent manner (Abu-Shaar and Mann, 1998;Brook and Cohen, 1996;Hays et al., 1999).In contrast to the DV axis, Dpp and Wg act combinatorially to generate the proximodistal (PD) axis of the leg by inducing a different set of target genes, including Distalless (Dll) and dachshund (dac) (Campbell et al., 1993;Diaz-Benjumea et al., 1994;Lecuit and Cohen, 1997;Mardon et al., 1994) (Fig. 1A). Unlike Wg and Dpp, which are expressed in ventral and dorsal sectors of the leg disc, respectively, Dll and dac are expressed in approximately circular domains whose centers are located where the Wg and Dpp sectors meet in the middle of the disc (Fig. 1A). Dll is expressed in a large central domain of the leg disc that gives rise to the distalmost positions of the adult leg (tarsus and distal tibia), whereas dac is expressed in more medial PD positions. It has be...