We have characterized the early stages of murine hindlimb morphogenesis in the legless (lgl)mutant and non-mutant littermates. Initially the entire ventral ectoderm expresses many genetic markers characteristic of the AER (en-1, fgf-8, msx-2, dlx-2, cd44, and cx-43). Subsequently, the expression domain of most of these genes is restricted to the thickened ectoderm of the disto-ventral limb margin prior to forming an AER. In lgl, the expression of these genes is initiated but not maintained and the disto-ventral marginal ectoderm does not thicken. In contrast, Wnt7a expression is initiated and maintained in the dorsal ectoderm. The limb mesenchyme of lgl and non-mutant embyros initially expresses lmx-1b and fgf-10 uniformly. As the ventro-distal marginal ectoderm thickens, lmx-1b is progressively dorsally restricted in non-mutants but continues to be expressed ventrally in lgl hindlimb buds. These data suggest that establishment of a dorsoventral ectodermal interface is not sufficient for AER formation and that restriction of lmx-1b to the dorsal mesenchyme is coordinately linked to AER formation. (C) 1998 Elsevier Science Ireland Ltd. All rights reserved.