Seven protein tyrosine phosphatase (PTPase) genes have been identified in the fruit-fly Drosophila melanogaster. Four of these genes encode receptor-linked PTPases (R-PTPs) that are expressed on central nervous system axons in the embryo. Each axonal R-PTP has an extracellular domain that is homologous to vertebrate adhesion molecules and to identified mammalian R-PTPs. Two non-receptor PTPase genes have been isolated to date. One of these, corkscrew (csw), encodes an SH2 domain-containing PTPase that appears to be a homolog of mammalian PTP1D. Genetic evidence indicates that the csw PTPase is involved in the transduction of signals from receptor tyrosine kinases to their down-stream targets, which include Ras proteins.