The non-visual ß-arrestins are cytosolic proteins highly conserved across species that participate in a variety of signalling events, including plasma membrane receptor degradation, recycling, and signalling, and that can also act as scaffolding for kinases such as MAPK and Akt/PI3K. In Drosophila melanogaster, there is only a single non-visual ß-arrestin, encoded by kurtz, whose function is essential for neuronal activity. We have addressed the participation of Kurtz in signalling during the development of the imaginal discs, epithelial tissues requiring the activity of the Hedgehog, Wingless, EGFR, Notch, Insulin, and TGFβ pathways. Surprisingly, we found that the complete elimination of kurtz by genetic techniques has no major consequences in imaginal cells. In contrast, the over-expression of Kurtz in the wing disc causes a phenotype identical to the loss of Hedgehog signalling and prevents the expression of Hedgehog targets in the corresponding wing discs. The mechanism by which Kurtz antagonises Hedgehog signalling is to promote Smoothened internalization and degradation in a clathrin- and proteosomal-dependent manner. Intriguingly, the effects of Kurtz on Smoothened are independent of Gprk2 activity and of the activation state of the receptor. Our results suggest fundamental differences in the molecular mechanisms regulating receptor turnover and signalling in vertebrates and invertebrates, and they could provide important insights into divergent evolution of Hedgehog signalling in these organisms. Non-visual β-arrestins are key proteins involved in plasma membrane receptor internalization, recycling, and signalling. The activity of β-arrestins is generally linked to seven-transmembrane receptors, but in vertebrates they can also participate in many other signalling pathways. Consistently, β-arrestins play important roles during vertebrate development and are implicated in a variety of human pathologies. Here we take advantage of the fruit fly model to analyse the genetic requirements of the unique fly non-visual β-arrestin (kurtz) in signalling during the development of imaginal epithelia. To our surprise, we find that the complete elimination of kurtz has no major consequences in imaginal cells. Our data suggest that insect epithelial cells have evolved arrestin-independent mechanisms to control receptor turnover and signalling, so arrestin function has become less critical. On the other hand, in contrast to previous reports in vertebrates, we find that the over-expression of Kurtz blocks Hedgehog signalling by promoting the internalization and degradation of the transductor Smoothened. We suggest that such differences are based on the specific requirement of the primary cilia for Hedgehog signalling in most vertebrates. These results could provide important insights into divergent modes of membrane receptor regulation and Hedgehog signalling in vertebrates and invertebrates.