Molecular and genetic studies over the past two decades have established that animals ranging from the fruit fly to the human utilize a common "toolkit" of genes to create the myriad cell types during development. For even some of the most well studied developmental paradigms, however, little is known of the transcriptional regulatory networks activated by these core components. Moreover, how these networks manifest the initial cell fate decision remains a rigorous topic of investigation. The Drosophila melanogaster mechanosensory organ lineage has long been a model for binary cell fate specification mechanisms. While it is well-established that the Notch signaling pathway is the dominant cell fate specification mechanism in this lineage, little is known of the battery of genes downstream of the canonical pathway components that enforce the cell fate decision. In this body of work I analyze the Notch signaling events at opposite ends of the lineage with the specification of the mechanosensory organ precursor cell (SOP) at the beginning and the post-mitotic socket and shaft cells at the penultimate of the lineage. These studies focus on the transcriptional regulation of three genes, neuralized, Sox15 and sv. I utilize a number of loss of function mutants, misexpression studies, and transgenic reporter constructs to identify enhancer modules and tease out their regulatory factors. Chapter 2 comprises an analysis of the transcriptional regulation of neuralized during SOP specification where I present evidence that neuralized is both a participant in and a target of Notch signaling, requiring two partially redundant. Chapter 3 focuses on the transcriptional regulation and function of Sox15, a transcription factor specifically expressed in the post-mitotic socket cell. I show that Sox15 is a target of Notch signaling in the socket cell and is required for the proper differentiation of the socket cell as it relates to mechanosensory function. Chapter 4 dovetails off Sox15 and examines regulation of sv in the shaft cell, where I find the dominant theme is auto-regulation. Lastly, Chapter 5 describes the development of a new transgenic reporter system I developed for the rapid screening of genomic fragments for enhancer activity.