Ca2+ inside cells must be regulated around 10 )7 nM, since enzyme targets respond to the calcium signal in this concentration range. Regulation is achieved through the reversible complexation to several classes of Ca 2+ binding proteins, the best known of which is that of the EF-hand proteins. However, the most important task of these proteins is not the buffering of Ca 2+ but the processing of the information it carries. These proteins decode the Ca 2+ signal by undergoing conformational changes, at the end of which Ca 2+ information is transferred to the target protein. The buffering of cell Ca 2+ is instead the sole role of proteins intrinsic to membranes, which bind Ca 2+ at one side of the membrane, transport it across, and discharge it to the other side. These proteins are located in the plasma membrane and membrane organelles, and belong to several classes: channels, ATPases (pumps), Na The completion of the human and mouse genome projects has revealed the presence of more than 30 000 genes in vertebrates and many more encoded mRNAs and proteins. The next formidable and most challenging task is to determine the physiological and pathophysiological functions of these genes within living organisms. This will be achieved by interfering with the expression of individual genes using genetic and pharmacological approaches. In this respect, germ line-targeted mutagenesis through gene disruption (knock-out) in murine embryonic stem (ES) cells has been widely used during the last decade.However, there are a number of limitations (embryonic lethality, functional redundancies between related genes, compensatory mechanisms during development, impossibility to discriminate between cell-autonomous and noncell-autonomous events) that preclude a simple genetic analysis of gene function in vivo through conventional gene knock-out approaches. In fact, only targeted spatio-temporally-controlled somatic mutations that are generated in animal models in given cell-type/tissues and at chosen times during pre-and post-natal life can lead to the functional dissection of complex regulatory networks, thus revealing the physiological and pathophysiological functions of the genes involved. To generate such somatic mutations, we have developed a new genetic tool based on the bacteriophage P1-Cre/lox system. A conditional ligandinducible Cre recombinase, Cre-ER T2 , has been generated by fusing Cre with a mutated ligand binding domain of the human oestrogen receptor (ER) that binds the synthetic ligand tamoxifen, but not estradiol. Upon tamoxifen administration the Cre activity is induced, and ÔÔfloxedÕÕ DNA segments flanked by loxP sites are efficiently excised. This somatic conditional mutagenesis approach is illustrated by describing our recent mouse studies that are aimed at dissecting the retinoid signaling pathway, a complex regulatory network involved in vertebrate morphogenesis, organogenesis, growth, cellular differentiation and homeostasis. These studies have revealed the physiological and pathophysiological functions of the ...