Runt and Lozenge (LZ) are members of the Runt domain family of transcriptional regulators and control a large number of developmental processes in Drosophila. Runt is a pair-rule gene, and is part of the network of genes that control pattern formation in the embryo. In the central nervous system, Runt function is necessary for the development of a subset of neurons. Runt is also a key regulator of sex determination, and directly controls Sex-lethal, a master gene that determines sex of the animal and controls dosage compensation. The LZ protein also participates in several key processes. LZ controls pre-patterning and cell-fate choices in the development of the visual system by regulating the expression of several fate-specifying transcription factors, and works in conjunction with general signaling pathways. LZ function is also required in hematopoiesis for the specification of a Drosophila blood cell lineage.