Cranial sensory placodes arise as transient thickenings of embryonic head ectoderm (van Wijhe, 1883;von Kupffer, 1891) and invaginate/ingress to form components of the nose, lens and inner ear (Bailey and Streit, 2006; Baker and Bronner-Fraser, 2001;Schlosser, 2006). Of the three sensory placodes, the lens and otic are relatively easy to distinguish and manipulate early in development. Therefore, tissue interactions and signals guiding their induction have been studied extensively (reviewed by Brown et al., 2003;Chow and Lang, 2001;Donner et al., 2006;Grainger, 1992;Noramly and Grainger, 2002;Riley and Phillips, 2003;Saha et al., 1989;Streit, 2001;Torres and Giraldez, 1998).By contrast, development of the olfactory sensory system has been primarily investigated at later stages. An attractive model for studying neurogenesis, its myriad of derivatives include the regenerative odorant sensing olfactory neurons in the olfactory epithelium (Calof et al., 1998;Graziadei and Graziadei, 1979;Graziadei and Metcalf, 1971;Graziadei and Monti Graziadei, 1983), the ingressing gonadotropin-releasing hormone neurons (reviewed by Parhar, 2002;Wray, 2002) [for a contrary view see Whitlock (Whitlock, 2005)], the pheromone-detecting vomeronasal organ (Dulac, 1997) and other neuromodulatory and neuroendocrine cells (Northcutt and Muske, 1994;Tarozzo et al., 1995;Yamamoto et al., 1996). It is the only placode to give rise to glial cells that ingress and migrate along the olfactory nerve towards the brain (Chuah and West, 2002;Ramon-Cueto and Avila, 1998). Cues that guide differentiation along these different pathways and the molecular mechanisms underlying the patterned wiring of olfactory sensory neurons have been examined extensively (reviewed by Baker and Margolis, 2002; Balmer and LaMantia, 2005).Contrasting with this wealth of data, inductive events that initiate olfactory development remain ambiguous, partially because the placode is morphologically invisible until relatively late (HH13+ in birds). Transplantation studies show that precursors straddle the lateral anterior neural folds and adjacent ectoderm in the neurula (Couly and Le Douarin, 1985), but their exact location at intervening stages was unclear. Recent cell marking studies in zebrafish and chick have examined the origin of the olfactory placode at higher resolution and at intervening stages (Bhattacharyya et al., 2004;Whitlock and Westerfield, 2000). Olfactory precursors are initially distributed in a broad region spanning the anterior neural folds and overlapping with lens precursors. Over time, they become progressively restricted to the most anterior ectoderm, finally resolving to a discrete olfactory pit. Knowledge of the location of precursors at different stages has facilitated manipulation of their development.To understand how and when the nasal epithelium is first induced, we examined competence, specification and commitment of ectoderm toward an olfactory fate. This information is a necessary prerequisite for interpreting results of functional perturba...