The tip of the Dictyostelium slug functions much like an embryonic organiser; when grafted onto the flank of a recipient slug, it recruits a mass of prespore cells and leads them away as part of a secondary slug. CudA is a nuclear protein which is expressed in prespore cells where it acts as a specific transcription factor. CudA is also expressed in an anteriorly located group of cells, the tip-organiser, that is believed to constitute the functional tip. We identify an expansin-like gene, expl7, that is expressed within the tip-organiser region and which is not expressed in a cudA null strain. The expl7 promoter contains a region that binds to CudA in vitro and this region is necessary for expression in the tip-organiser. These results provide an end-point for a previously defined signal transduction pathway in which regionalized expression of the ACA adenylyl cyclase within the tip-organiser leads to localised cAMP-induced activation of STATa and consequent binding of STATa to the cudA promoter. STATa then induces expression of cudA and cudA directs the transcription of target genes such as expl7.