One of the most intriguing questions posed by bacterial spore formation concerns the establishment of cell-specific gene expression in the prespore and mother cell. Recent results now suggest that sigma factors, in addition to their temporal roles in the control of gene expression, may also be the key determinants of differential gene expression during sporulation in Bacillus subtilis. The genes encoding two sporulation-specific sigma factors, sigma E and sigma F, are expressed soon after the initiation of sporulation, before the formation of the spore septum that separates the prespore and mother cell compartments. It now appears that sigma E and sigma F direct transcription only after septation and then in a specific cell type, suggesting that the segregation of the sigma activities after septation is a key event in the establishment of differential gene expression. The mechanism responsible for this segregation is complex, involving at least seven other gene products. We discuss possible models for the interactions between the sigma factors and the establishment of cell-specific transcription.