For decades we have known that reciprocal inductive interactions between the embryonic ureteric bud and the metanephric mesenchyme are the basis for kidney development. Signals from the mesenchyme promote the branching of the bud, whereas signals from the bud regulate the survival, proliferation, and differentiation of nephron progenitors. Due to the complex nature of the bud-derived signals, progress in identifying these factors has been slow. However, in the last several years, tremendous advances have been made in identifying specific roles for various secreted proteins in nephron progenitor cell development. Here, we briefly review the roles for Fgfs and Wnts in induction of the nephron progenitors.