An assumption inherent in many models of visual space is that the spatial coordinates of retinal cells implicitly give rise to the perceptual code for position. The results of the experiments reported here, in which it is shown that retinally non-veridical locations of contour elements are used by the visual system for contour-element binding, lend support to a different view. The visual system does not implicitly code position with reference to the labelled locations of retinal cells, but dynamically extracts spatial position 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 local velocity cues, are combined to code the position of objects in the visual world.