The development of neurons and glia is governed by a multitude of extracellular signals that control protein tyrosine phosphorylation, a process regulated by the action of protein tyrosine kinases and protein tyrosine phosphatases (PTPs). Receptor PTP (RPTP; also known as PTP) is expressed predominantly in the nervous system and exhibits structural features common to cell adhesion proteins, suggesting that this phosphatase participates in cell-cell communication. It has been proposed that the three isoforms of RPTP play a role in regulation of neuronal migration, neurite outgrowth, and gliogenesis. To investigate the biological functions of this PTP, we have generated mice deficient in RPTP. RPTP-deficient mice are viable, are fertile, and showed no gross anatomical alterations in the nervous system or other organs. In contrast to results of in vitro experiments, our study demonstrates that RPTP is not essential for neurite outgrowth and node formation in mice. The ultrastructure of nerves of the central nervous system in RPTP-deficient mice suggests a fragility of myelin. However, conduction velocity was not altered in RPTP-deficient mice. The normal development of neurons and glia in RPTP-deficient mice demonstrates that RPTP function is not necessary for these processes in vivo or that loss of RPTP can be compensated for by other PTPs expressed in the nervous system.Protein tyrosine phosphatases (PTPs), in concert with protein tyrosine kinases (PTKs), regulate signal transduction pathways by tyrosine phosphorylation and dephosphorylation. PTPs comprise a structurally diverse family of enzymes. One group of PTPs exhibit structural features that are also common to cell surface receptors and cell adhesion molecules (CAMs), suggesting that these receptors may play a role in cell-cell communication (4,43). These receptor-like PTPs (RPTPs) are composed of an extracellular domain, a single transmembrane domain, and a cytoplasmic portion that contains one or two tyrosine phosphatase domains. RPTP (also known as PTP) and RPTP␥ are two members of a subfamily of RPTPs that contain a region in their extracellular domains that has sequence homology to the enzyme carbonic anhydrase (CAH) (2,3,24,25). In both RPTP and RPTP␥, the CAH domain is followed by a fibronectin domain type III repeat and by a long unique sequence termed the spacer domain. Three different isoforms of RPTP are expressed as a result of alternative mRNA splicing: a short and a long form that differ by the presence of a stretch of 860 amino acid residues in the spacer domain and a secreted form composed of only the extracellular domain of RPTP, also known as 3F8 proteoglycan or phosphacan. Both transmembrane RPTPs and the phosphacan isoform are predominantly expressed as chondroitin sulfate proteoglycans.Previous studies have suggested a role for RPTP in gliogenesis and neuron-glial cell interaction, neurite outgrowth, and neuronal migration, as well as in regeneration after injury (21,26,43).