The neural crest is a population of highly migratory mesenchymal cells that ultimately localize in specific sites and differentiate into a variety of cell types. This report describes studies on the factors governing the migratory pathways, differentiation, and ultimate localization of the neural crest-derived pigment cells (black melanophores and yellow xanthophores) in the California newt, Taricha torosa. Melanophores first appear scattered in the dorsal portion of the lateral neural crest migratory pathway (between the somites and the ectoderm). These cells are eventually found in two stripes: a dorsal stripe that runs along the apex of the somites, and a midbody stripe near the somite-lateral plate mesoderm border. Melanophores are not seen in the dorsal fin of prehatching embryos. Xanthophores can be identified with the light microscope using NH4OH-induced autofluorescence of pteridines and in the transmission electron microscope (TEM) by the presence of pterinosomes. Xanthophores first appear scattered among the melanophores over the surface of the somites; these cells eventually are found between the two melanophore stripes and in the dorsal fin. We were interested in determining the roles of the extracellular matrix (ECM) in controlling the formation of pigment cell patterns in T. torosa. Immunocytochemistry, Alcian blue staining of paraffin sections and ruthenium red staining of thin sections (accompanied by Streptomyces hyaluronidase and chondroitinase ABC digestion) were used to identify the composition and distribution of the ECM surrounding the pigment cells at various stages during development. The adhesive glycoprotein fibronectin is found in the dorsal portion of the lateral neural crest migratory pathway as well as in the dorsal fin matrix. Glycosaminoglycans (GAG) are found primarily in the dorsal fin and in the ECM surrounding the notochord. The dorsal fin ECM contains hyaluronate (HA), which was identified in the TEM as Streptomyces hyaluronidase-sensitive 3-5 nm microfibrils, as well as sulfated proteoglycan aggregates. We then confronted T. torosa neural crest cells in vitro with known ECM molecules. When neural folds are explanted onto tissue culture plastic in half-strength L-15 medium containing 10% fetal calf serum (FCS), cells migrate from the explant and differentiate into melanophores after 6 to 9 days. Xanthophores appear in the cultures 2 to 4 days after the appearance of melanophores. When cultured on three-dimensional collagen gels, xanthophores migrate significantly farther (P less than 0.01) onto and into the collagen than melanophores (336 +/- 183 vs 196 +/- 160 microns from the edge of the explant).(ABSTRACT TRUNCATED AT 400 WORDS)