olig genes encode a previously unrecognized group of vertebratespecific basic helix-loop-helix transcription factors. As shown in mice, chickens, and zebrafish, two members of this group, olig1 and olig2, are involved in the differentiation of motoneurons and oligodendrocytes, but nothing is known about the role of the third member, olig3. Here, we show that olig3 plays an essential role in the establishment of the neural crest-lateral neural plate boundary. In zebrafish embryos, morpholino-induced olig3 inactivation dramatically increases the number of neural crest cells, but lateral neural plate fates (interneurons and astrocytes) are missing. Zebrafish swirl mutants that have impaired bone morphogenetic protein signaling and lack neural crest cells display an expanded olig3 expression domain. Moreover, olig3 is up-regulated in mindbomb mutants lacking the neural crest because of an impaired notch signaling, and olig3 repression in such mutants rescues the neural crest. In addition, olig3 regulates ngn1 and deltaA expression in interneuron precursors. Our results indicate that olig3 has an essential proneural activity in the dorsal spinal cord and cooperates with the Delta͞Notch regulatory loop to establish the boundary between the neural crest and the lateral neural plate. Thus, a proper regulation of the olig gene family is essential for the formation of three cell types (oligodendrocytes, astrocytes, and neural crest) that are unique to vertebrates.T he spinal cord of vertebrates is originated by remodeling of the neural plate. Its general plan comprises motoneurons located ventrally and interneurons in a more dorsal position. In zebrafish, Rohon-Beard (RB) cells (primary sensory neurons) are generated at the outer border of the neural plate (within the neural crest domain) and migrate in the dorsal spinal cord, whereas cells of the dorsal root ganglia (also originated in the neural crest) migrate ventrally without entering the spinal cord. Two main signaling pathways are thought to establish the dorsoventral patterning of the embryonic neural tissue: bone morphogenetic protein (BMP) and Hedgehog (Hh). Hh signaling regionalizes the ventral neural tube and restricts the expression of some genes to dorsal regions (1). In parallel, BMP signaling determines a gradient of positional information throughout the entire neural plate that defines the establishment of dorsal and intermediate neuronal cell types of the spinal cord (2). The current view is that BMP and Hh morphogenetic activities generate zones of competence within which other factors will subsequently establish different cell fates. In this regard, components of the Delta͞Notch signaling pathway are involved in the generation of different neuronal and glial subtypes with a mechanism called lateral specification. Components of the Delta͞Notch genetic loops are often members of the basic helix-loop-helix (bHLH) family of transcription factors. The Neurogenin (Ngn) subfamily of bHLH is critical to establish the neurogenic program and maintain the Delta͞No...