The Drosophila gene buttonhead (btd) is required for the formation of the mandibular, the intercalary and the antennal head segments of the embryo. The btd protein (BTD) is functionally and structurally related to the human C(2)H(2) zinc finger transcription factor Sp1. A second Sp1-like Drosophila gene, termed Drosophila Sp1 (D-Sp1), had been identified on the basis of a partial sequence showing that the gene encodes a characteristic zinc finger domain, composed of three finger motifs similar to both Sp1 and btd. D-Sp1 is located in the same cytological location as btd in chromosome band 9A on the X-chromosome. It had been proposed that D-Sp1 and btd are likely to act as a gene pair and function in a at least partially redundant manner. Here we report the molecular analysis of D-Sp1 and its expression pattern during embryonic and larval development. We show that D-Sp1 acts as a transcriptional regulator. Lack-of-function analysis combined with rescue and gain-of-function studies indicates that btd and D-Sp1 play essential and redundant roles for mechanosensory organ development. However, D-Sp1 lacks the specific features of BTD required for embryonic intercalary and antennal segment formation.