Lysophospholipid mediators, lysophosphatidic acid (LPA) and sphingosine 1-phosphate (S1P), play important roles in diverse biological processes, including cell proliferation, survival, cytoskeleton changes, migration, wound healing, angiogenesis, tumor invasion, and embryonic development. The recent breakthrough in cloning and identification of several G-protein-coupled receptors for LPA and S1P has provided tools to dissect the complex mechanisms by which these lysophospholipids exert their (patho)physiological functions. Here, strategies and efforts in cloning and identifying the Edg family receptors for LPA and S1P are reviewed. Reporter gene assays used to take advantage of signaling properties of LPA and S1P, and to overcome intrinsic difficulties unique to this system, are described. From these experimental approaches, important lessons can be learned and applied to future studies of signal transduction of lysophospholipid receptors.