Over the years, many apparently contradictory findings and functions have been ascribed to the protein product of the WT1 tumour suppressor gene. These include being a transcriptional activator or repressor, a function in transcription versus RNA metabolism, and these days even a function as oncogene or tumour suppressor gene. To fully understand the role of WT1 in different diseases and normal development, we will need to understand these contradictions. In this review, we will discuss the present state of knowledge and suggest that a role for WT1 in influencing the mesenchymal–epithelial state of cells might be a common function that could explain many of the previously described findings.