The formation of the neural tube begins during gastrulation when ectoderm, an epithelial sheet on the outside of the embryo, is induced to form the neural plate. During the process of neural induction, the epithelium of the neural plate is regionalized along both the dorsoventral and anteroposterior axes of the embryo; this regionalization is likely to contribute to the cellular processes underlying neurulation. Genes whose expression marks the formation and regionalization of the neural plate and which encode cell adhesion molecules or putative transcription factors have been recently identified. The differential expression of these genes apparently subdivides the epithelium of the neural plate into small regions. Evidence from transgenic embryo experiments supports the idea that the differential expression of these genes in the neural plate plays a role in neural tube formation.