Adult stem cell function relies on the prior specification and organization of appropriate numbers of stem cells and supportive niche cells during development. Insights into those developmental processes could facilitate the synthesis of organoid mimics. Drosophila Follicle Stem Cells (FSCs) present an amenable paradigm with many similarities to mammalian gut stem cells. In an adult germarium a central domain of about 16 FSCs produces a posterior stream of transit-amplifying Follicle Cells (FCs), which encapsulate mature germline cysts to support egg development and, from their anterior face, quiescent Escort Cells (EC), which support the maturation of germline cysts. The behavior of FSCs is guided in part by niche signals produced by ECs and by a specialized polar cell FC derivative. Thus, ECs and FCs are both adult stem cell products and niche cells. Here we show by lineage analyses that adult ECs, FSCs and FCs derive from common precursors during pupal development. We infer that disparities in initial anterior-posterior (AP) precursor location followed by limited dispersal of progeny leads to a gradual acquisition of distinct fates determined by final AP location, with progeny of a single precursor commonly straddling EC and FSC, FSC and FC, or all three territories through most of pupal development. Direct visualization of pupal ovaries, including live imaging revealed a transient population of FC precursors posterior to the developing germarium awaiting emergence of the most mature germline cyst. The consequent budding process was quite different from the budding of egg chambers in adults. An anterior to posterior gradient of Wnt signaling develops shortly after pupariation. Loss of pathway activity cell autonomously resulted in more posterior adult progeny fates, while increased pathway activity elicited the opposite response, suggesting that stronger Wnt signaling favors anterior migration. Clearly detectable JAK-STAT pathway activity emerges only halfway through pupation after polar cells form, and spreads from posterior to anterior.Loss of JAK-STAT activity had similar consequences to increased Wnt pathway activity, drastically reducing FSC and FC production cell autonomously, while increased JAK-STAT activity promoted excessive precursor proliferation. We conclude that FSCs develop in co-ordination with their niche and product cells, that specification of stem cell identity is gradual, subject to stochastic influences and guided by graded extracellular signals, presaging similar regulation of adult stem cell behavior by the same pathways. cytokinesis to yield a progression of 2-, 4-, 8-and 16-cell germline cysts. Their maturation is accompanied by posterior movement and depends on interactions with neighboring quiescent, somatic