Moles are unique among mammals because all females of several species of genus Talpa have bilateral ovotestes (gonads with both ovarian and testicular tissue). Based on the analysis of a large sample of embryos, foetuses and infants over a 13-year period, we have studied the development of the gonads in male and female moles of the species Talpa occidentalis. Several new field and laboratory procedures were developed specifically to obtain and manage this singular material. Our results reveal that gonads of female moles develop according to a testis-like pattern, which includes cord formation and mesonephric cell migration, and begins at the same time as testis differentiation in males. The first signs of sex differentiation do not appear in males but in females. Female (but not male) gonads are regionalised with a cortex (precursor of the ovarian tissue) and a medulla (precursor of the testicular tissue). Germ cells concentrate only in the cortex, so that the medulla soon becomes sterile. Testicular tissue development is transiently retarded in females for about a week before birth, and resumes afterwards. Development of the ovarian tissue in females is considerably delayed with respect to that of testicular tissue in both males and females. The molecular characterisation of peritubular myoid cells, which are exclusive of testes, evidences the presence of testicular tissue in the gonads of female moles, which also contain Leydig cells. However, the absence of fully differentiated Sertoli cells indicates that these cells are not responsible for triggering the differentiation of such a testicular tissue. Our results are also discussed regarding the definition of Sertoli cell morphology and function, and the possible role of germ cells in the sex-reversal process. Differences observed between XX and XY gonad development in moles suggest that the mammalian testis-determining gene, SRY, has an "anti-regionalisation" role during gonadal development, at least in those mammalian species in which regionalisation of the female gonad occurs.