Alpha-endosulfine is a small protein that has been proposed to regulate ion channel activity and insulin secretion, but in vivo studies have been lacking. We have previously established the Drosophila ovary as a model system in which to study adult tissue growth regulation, and demonstrated a role of the insulin pathway in the proliferative response of ovarian cells to nutritional changes. Here, we find that the Drosophila alpha-endosulfine (dendos) gene, whose protein is expressed in germline and somatic cells of the ovary, as well as in the brain and certain regions of the intestine, is also required for this response. This requirement is non-cell autonomous, which is consistent with a role of dendos in secretion of Drosophila insulin-like peptides (DILPs), required for the proliferative response to nutritional changes. Our results show that dendos is also required for a distinct process in oogenesis, namely, the osmotic regulation of stage 14 oocytes, and that this requirement is cell autonomous, consistent with the role in ion channel regulation suggested by studies of the mammalian homologues.