In mice, Ϸ1,000 odorant receptor (OR) genes are expressed in olfactory sensory neurons (OSNs). Homeodomain sites can be recognized in the promoter and upstream regions of several OR genes. Here, using the yeast one-hybrid system and electrophoretic mobility shift assay, we report that Lhx2, a LIM-homeodomain protein, binds to the homeodomain site in the mouse M71 OR promoter region. In Lhx2-deficient mice, the morphology of the olfactory epithelium is grossly normal. However, expression of OMP is abolished and that of GAP43 is severely reduced, indicating that no mature and few immature OSNs are produced. M71 and other OR genes also are not expressed. OSN development appears to be arrested between the terminal differentiation into neurons and the transition to immature neurons. Thus, Lhx2 is required for complete development of OSNs in mice.I n the mammalian olfactory epithelium (OE), olfactory sensory neurons (OSNs) detect chemical stimuli in the external environment by expressing odorant receptor (OR) genes (1, 2). These genes encode proteins with a putative seven-transmembrane domain structure, a defining characteristic of G proteincoupled receptors. It is believed that an individual OSN expresses a single OR gene (3) from the Ϸ1,000 OR genes in the mouse genome (4), but the strength of the evidence for this one-neuron-one-receptor hypothesis has been questioned (5). An OR gene is expressed from a single allele in a given cell (6). The OE is thus a complex mosaic of Ϸ2,000 OSN populations, each defined as expressing one allele from a choice of 2 ϫ Ϸ1,000 genes. OSNs expressing the same OR gene typically reside within one of at least four zones in the OE (7,8), where they are interspersed with OSNs expressing other OR genes. By targeted mutagenesis, all OSNs expressing the same OR were shown to project their axons to the same glomeruli in a remarkably precise manner, and these OR-specific projections to the olfactory bulb are influenced by the specificity of the expressed OR (9, 10). The onset of OR expression occurs before the first contact between OSN axons and the forebrain in embryos, and OSNs express OR genes in the absence of the axonal target, the olfactory bulb (11).The mechanisms underlying OR gene choice and expression are not understood, but irreversible DNA rearrangements have been excluded (12, 13). Sequence analyses of human, mouse, and rat OR genes have revealed a variety of motifs upstream of the transcription start site, including O͞E-like, E-box, Ikaros, homeodomain, and methylation-sensitive vMYB motifs (14). However, an involvement in OR gene regulation has not been shown for any of these motifs. Short (9-kb) transgenes of two OR genes, MOR23 and M71, replicate most OR expression features (15). A region of 405 bp upstream of the MOR23 transcription start site is required for transgene expression. In this and other upstream OR regions, common sequence motifs of homeodomain and O͞E-like sites have been recognized (15).Here, we have conducted yeast one-hybrid screening (16) to identify transcr...