Fig. 2. Expression of dally is regulated by Hh and En. (A-C) Misexpression of the membrane-tethered form of Hh, HhCD2, induces ectopic expression of dally. dally::lacZ expression was followed using anti-ß-galactosidase antibody staining (A). Clones expressing hhCD2 are marked by GFP in (B). (C) A merged image of A and B. Levels of dally::lacZ are increased both in cells inside and adjacent to the clones located in the A compartment (arrows), while clones in the P compartment do not alter dally expression. (D-F) dally is repressed by en in the P compartment. (D) Expression pattern of dally::lacZ. (E) Positions of en-mutant clones are shown by loss of GFP signal. (F) A merged image of D and E. dally expression is significantly elevated in en-mutant clones induced in the P compartment (arrow), indicating that dally is normally downregulated by en. Arrowheads in A and D indicate the AP boundary.