The formation of the apical ectodermal ridge (AER) is critical for the distal outgrowth and patterning of the vertebrate limb. Recent work in the chick has demonstrated that interplay between the Wnt and Fgf signaling pathways is essential in the limb mesenchyme and ectoderm in the establishment and perhaps the maintenance of the AER. In the mouse, whereas a role for Fgfs for AER establishment and function has been clearly demonstrated, the role of Wnt/-catenin signaling, although known to be important, is obscure. In this study, we demonstrate that Wnt3, which is expressed ubiquitously throughout the limb ectoderm, is essential for normal limb development and plays a critical role in the establishment of the AER. We also show that the conditional removal of -catenin in the ventral ectodermal cells is sufficient to elicit the mutant limb phenotype. In addition, removing -catenin after the induction of the ridge results in the disappearance of the AER, demonstrating the requirement for continued -catenin signaling for the maintenance of this structure. Finally, we demonstrate that Wnt/-catenin signaling lies upstream of the Bmp signaling pathway in establishment of the AER and regulation of the dorsoventral polarity of the limb. The formation of the apical ectodermal ridge (AER) has long been known to play a critical role in the distal outgrowth and patterning of the vertebrate limb. Classical experiments performed by Saunders (1948) demonstrated that surgical removal of this tissue shortly after its formation results in severe truncations of the entire limb, whereas removal at progressively later stages in development allows outgrowth of the more distal elements in a progressive fashion. Given the critical role that the AER plays in limb development, a major focus within the limb field has been to identify molecules that are involved in its establishment and maintenance. The result of this effort has been the discovery that several signaling pathways interact in the establishment of the AER. For example, recent work in the chick has demonstrated that cooperation between the Wnt/-catenin and Fgf signaling pathways is essential in establishing the AER. Briefly, the prevailing model is as follows: Wnt/-catenin signaling in the limb mesenchyme appears to be required to activate Fgf10 expression in the same tissue (Kawakami et al. 2001). Mesenchymally derived Fgf10 then regulates expression of Wnt3a in the overlying surface ectoderm and later in the subset of ectodermal cells that is destined to give rise to the AER (Kengaku et al. 1997(Kengaku et al. , 1998. Wnt3a signaling is then thought to act through the -catenin pathway to activate the expression of Fgf8 in these pre-AER cells (Kengaku et al. 1998). Fgf8 signaling to the mesenchyme maintains Fgf10 expression, presumably through the mesenchymal Wnt/-catenin pathway, thereby completing a regulatory circuit that is critical for maintenance of the AER (see Kawakami et al. 2001).In the mouse, genetic evidence supports the involvement of both Fgf and Wnt/-c...