Large numbers of cells with unique neuronal specificity are generated during development of the central nervous system of animals. Here we discuss the events that generate cell diversity during early development of the ventral nerve cord of different arthropod groups. Neural precursors are generated in a spatial array in the epithelium of each hemisegment over a period of time. Spatial cues within the epithelium are thought to evolve as embryogenesis proceeds. This spatiotemporal information might generate diversity among the neural precursors in all arthropod groups, although the mechanisms regulating the positioning of individual precursors have diverged. However, distinct strategies for the generation of neuronal diversity have evolved in the different arthropod lineages that appear to correlate with specific modes of ontogenesis. We hypothesize that an evolutionary trend towards reduced cell numbers and possibly rapid embryogenesis in insects has culminated in the appearance of stereotyped neuroblast lineages.