Although development of the adult Drosophila compound eye is very well understood, little is known about development of photoreceptors (PRs) in the simple larval eye. We show here that the larval eye is composed of 12 PRs, four of which express blue-sensitive rhodopsin5 (rh5) while the other eight contain green-sensitive rh6. This is similar to the 30:70 ratio of adult blue and green R8 cells. However, the stochastic choice of adult color PRs and the bistable loop of the warts and melted tumor suppressor genes that unambiguously specify rh5 and rh6 in R8 PRs are not involved in specification of larval PRs. Instead, primary PR precursors signal via EGFR to surrounding tissue to develop as secondary precursors, which will become Rh6-expressing PRs. EGFR signaling is required for the survival of the Rh6 subtype. Primary precursors give rise to the Rh5 subtype. Furthermore, the combinatorial action of the transcription factors Spalt, Seven-up, and Orthodenticle specifies the two PR subtypes. Therefore, even though the larval PRs and adult R8 PRs express the same rhodopsins (rh5 and rh6), they use very distinct mechanisms for their specification.[Keywords: Drosophila; visual system development; photoreceptor specification; transcription factor interaction; EGFR signaling] Supplemental material is available at http://www.genesdev.org. In spite of the morphological and developmental differences between vertebrate and invertebrate eyes, their basic function to translate light information from the environment to the brain is maintained. In Drosophila, the adult compound eye has been studied in great detail. It consists of ∼800 individual ommatidia. Each ommatidium contains eight photoreceptor cells (PRs): six outer PRs (R1-R6) and two inner PRs (R7 and R8). Different PRs are sensitive to different wavelengths of light, depending on the rhodopsin gene (rh) they express. Outer PRs are involved in motion detection and contain Rh1, a broad-spectrum photopigment. R7 and R8 each expresses a distinct rh with restricted absorption spectra-rh3, rh4, rh5, and rh6. The type of rh expressed in inner PRs defines two major types of ommatidia: The pale (p) ommatidia have R7 that contain UV-sensitive Rh3 with the corresponding R8 expressing blue Rh5, whereas in yellow (y) ommatidia, R7 expresses UV-sensitive Rh4 and R8 expresses green Rh6.Recently, substantial progress has been achieved in understanding the molecular basis of how different subtypes of PRs are specified (Wernet and Desplan 2004;Mikeladze-Dvali et al. 2005a). Initially, R7 and R8 express the transcription factor spalt (sal) that is required to specify them as inner PRs and distinguish them from outer PR identity (Mollereau et al. 2001). Then, the expression in R7 of the gene prospero (pros), which encodes a homeodomain transcription factor, further distinguishes R7 from R8 by repressing R8 rhs, rh5, and rh6 .The generation of the two types of ommatidia, yellow and pale, includes several steps. First, the stochastic expression of the transcription factor Spineless (Ss) in ...