Dlx homeobox genes play an important role in vertebrate forebrain development. Dlx1/Dlx2 null mice die at birth with an abnormal cortical phenotype, including impaired differentiation and migration of GABAergic interneurons to the neocortex. However, the molecular basis for these defects downstream of loss of Dlx1/Dlx2 function is unknown. Neuropilin-2 (NRP-2) is a receptor for Class III semaphorins, which inhibit neuronal migration. Herein, we show that Neuropilin-2 is a specific DLX1 and DLX2 transcriptional target by applying chromatin immunoprecipitation to embryonic forebrain tissues. Both homeobox proteins repress Nrp-2 expression in vitro, confirming the functional significance of DLX binding. Furthermore, the homeodomain of DLX1 and DLX2 is necessary for DNA binding and this binding is essential for Dlx repression of Nrp-2 expression. Of importance, there is up-regulated and aberrant expression of NRP-2 in the forebrains of Dlx1/Dlx2 null mice. This is the first report that DLX1 or DLX2 can function as transcriptional repressors. Our data show that DLX proteins specifically mediate the repression of Neuropilin-2 in the developing forebrain. As well, our results support the hypothesis that down-regulation of Neuropilin-2 expression may facilitate tangential interneuron migration from the basal forebrain.Members of the Dlx homeobox gene family, orthologs of Distal-less in Drosophila melanogaster, are expressed in the developing brain (1, 2), retina (3), craniofacial structures, and limbs (4). Four Dlx genes, Dlx1, Dlx2, Dlx5, and Dlx6, are expressed in overlapping domains in the subcortical telencephalon and diencephalon, including the ventral thalamus and the ganglionic eminences. There are distinct boundaries of Dlx1 and Dlx2 expression at the pallial-subpallial boundary (1). Insights into the functional role of Dlx genes in development have been primarily gained from analysis of the phenotypes of mice with targeted deletions of Dlx1/Dlx2 (5-8), Dlx5 (9), and Dlx5/Dlx6 (10). The single Dlx1 and Dlx2 knockouts have relatively normal forebrain development at birth, which is consistent with functional redundancy between Dlx1 and Dlx2 in this anatomic region (1, 4). However, postnatal Dlx1 mutants show specific differentiation defects in interneuron subclasses (11,12). In the absence of both Dlx1 and Dlx2 function, there is abnormal development of the subventricular zone (SVZ) 2 of the ganglionic eminences. There is an almost complete loss of tangential migration of GABAergic interneurons from the medial ganglionic eminence (MGE) to the neocortex and from the lateral ganglionic eminence (LGE) to the olfactory bulb (5,13) 3 . These migrations comprise the major source of cortical inhibitory interneurons in the murine telencephalon (5, 14, 15). Furthermore, it is evident that there are both Dlx-dependent and Dlxindependent pathways affecting the differentiation and subsequent migration of interneurons to the striatum (6), olfactory bulb (13), and hippocampus (16).Our understanding of Dlx gene function is limit...