In the Drosophila embryo, activation of wingless and engrailed in the parasegment requires paired, a member of the Pax family of transcription factors. We have explored the possible conservation of this regulatory hierarchy in the developing mouse brain. We find that Pax-2 is expressed prior to somite formation in the presumptive mid/hindbrain region. Shortly thereafter, Wnt-1 (the wingless orthologue) and Engrailed-1 are expressed in overlapping regions within the Pax-2 domain. Pax-5 expression commences later, at the 3-somite stage. Thus, the spatial and temporal expression of Pax-2 is consistent with a possible regulatory role in the activation of Wnt-1 and En-1.