The telencephalon is the most diverse region of the brain with respect to both morphology and neuronal subtypes. This fact makes the task of unraveling the mechanisms underlying the development of this brain region rather daunting. Recent attempts to subdivide the embryonic telencephalon into distinct progenitor domains along the dorsal-ventral axis have provided an important framework on which to begin this process. These progenitor domains are defined by the restricted expression of transcriptional regulators and are proposed to give rise to specific subtypes of neurons. Work over recent years has provided important insights into the establishment and maintenance of these progenitor domains in the developing telencephalon.