1. The midline cells of the Drosophila embryonic CNS comprise a discrete neuroanatomical structure consisting of a small subset of neurons and glia. 2. Developmental commitment of the CNS midline cells requires the action of dorsal/ventral patterning genes. 3. The single-minded gene encodes a basic-helix-loop-helix transcription factor and acts as a master regulator for the CNS midline lineage. 4. A number of different transcription factors and proteins involved in cell-cell interactions are necessary for the differentiation of midline neurons and glia. 5. CNS midline cells have important functions in the formation of the ventral epidermis and axon commissures.