The establishment and early development of the ommatidial bundles in the presumptive eye of Drosophila have been investigated using electron microscopic serial sectioning. A progression of developmental stages has been characterized. Initially simple, symmetrically constructed bundles develop into asymmetrical, more complex constructions. Computer graphic reconstruction has been used to show the three-dimensional structure of the various ommatidial bundles. Autoradiography has been used to locate the position of a region of cell division which is intimately associated with the formation of the ommatidial bundles.