Networks of transcriptional regulatory proteins dictate specification of neural lineages from multipotent retinal progenitors. Rod photoreceptor differentiation requires the basic motifleucine zipper (bZIP) transcription factor NRL, because loss of Nrl in mice (Nrl ؊/؊ ) results in complete transformation of rods to functional cones. To examine the role of NRL in cell fate determination, we generated transgenic mice that express Nrl under the control of Crx promoter in postmitotic photoreceptor precursors of WT and Nrl ؊/؊ retina. We show that NRL expression, in both genetic backgrounds, leads to a functional retina with only rod photoreceptors. The absence of cones does not alter retinal lamination, although cone synaptic circuitry is now recruited by rods. Ectopic expression of NRL in developing cones can also induce rod-like characteristics and partially suppress cone-specific gene expression. We show that NRL is associated with specific promoter sequences in Thrb (encoding TR2 transcription factor required for M-cone differentiation) and S-opsin and may, therefore, directly participate in transcriptional suppression of cone development. Our studies establish that NRL is not only essential but is sufficient for rod differentiation and that postmitotic photoreceptor precursors are competent to make binary decisions during early retinogenesis.cell fate determination ͉ development ͉ gene regulation ͉ retina ͉ synaptic organization N euronal cell fate is determined by a hierarchical, stepwise process of binary decisions, commencing with multipotent progenitors that give rise to distinct cell lineages (1-3). The neural retina is an attractive model to investigate cell-fate determination; it contains seven major cell types that derive from common pool(s) of multipotent progenitor cells (4, 5). These retinal progenitors pass through sequential waves of competence, during which postmitotic cells can be specified to only a subset of neuronal fates (1, 6). Birth-dating studies in rodents indicate that ganglion cells, horizontal cells, cone photoreceptors, and amacrine cells are born prenatally, whereas most rod photoreceptors, bipolar cells, and Müller glia are generated postnatally (7-9). The orderly sequence of cell birth and a considerable overlap in their generation suggest a sequential program of cell intrinsic mechanisms and extrinsic signals that control cell fate decisions (10-16).Each neuronal lineage is meticulously established by highly coordinated transcription factor network(s) in response to local microenvironmental cues (17). Although extrinsic factors can promote differentiation (18,19), heterochronic mixing experiments demonstrate that progenitor cells at a particular time in development cannot be induced to generate temporally inappropriate cell types (1,20). Additionally, intrinsic priming of retinal progenitors appears to supersede the influence of environmental signals in specifying cell fate (21). Whether commitment of lineage-restricted precursors to a specific differentiation pathway is unidire...