An assumption inherent in many models of visual space is that the spatial c
oordinates of retinal cells implicitly give rise to the perceptual code for
position. The results of the experiments reported here, in which it is sho
wn that retinally non-veridical locations of contour elements are used by t
he visual system for contour-element binding, lend support to a different v
iew. The visual system does not implicitly code position with reference to
the labelled locations of retinal cells, but dynamically extracts spatial p
osition from the aggregate result of local computations. These computations
may include local spatial relationships between retinal cells, but are not
confined to them; other computations, including position derived from loca
l velocity cues, are combined to code the position of objects in the visual
world.