Electric stimulation experiments on the central nerve and on isolated scales of a freshwater teleost, Oryzias latipes, confirmed that the leucophores, like the melanophores, were controlled by the nerve. 2. AC stimulation induced pigment dispersion of the innervated leucophores. The response was not of the all or none type. 3. AC selectively acts on the nerve fibers to produce propagating excitation. 4. The transmitter released from the nerve terminals is suspected to be noradrenaline, and the postsynaptic receptor is of an adrenergic beta type.