Satellite cells are essential for postnatal growth and repair of skeletal muscle. The paired-box transcription factors Pax3 and Pax7 are expressed in emerging muscle precursors. Recent studies have traced the origin of satellite cells to the embryonic dermomyotome, however, their developmental regulation throughout embryogenesis remains unclear. We show the overlying surface ectoderm and lateral plate are essential for Pax3 expression, and that the overlying surface ectoderm and neural tube are necessary for Pax7 expression within the dorsal somite. Furthermore we show that the notochord acts to down regulate the expression of both genes. Moreover, we identify diffusible factors within these tissues that act to maintain expression of Pax3 ( + ) and Pax7 (+) muscle precursors. We show that Wnt1, 3a, 4 and 6 proteins are able to up regulate and expand the expression of Pax3 and Pax7 within the dorsal somite. Finally, we show that Wnt6 can mimic the effect of the dorsal ectoderm to maintain Pax3 and Pax7 expression.