In the vertebrate retina, feedback from horizontal cells (HCs) to cone photoreceptors plays a key role in the formation of the center-surround receptive field of retinal cells, which induces contrast enhancement of visual images. The mechanism underlying surround inhibition is not fully understood. In this review, we discuss this issue, focusing on our recent hypothesis that acidification of the synaptic cleft of the cone photoreceptor terminal causes this inhibition by modulating the Ca channel of the terminals. We present evidence that the acidification is caused by proton excretion from HCs by a vacuolar type H(+) pump. Recent publications supporting or opposing our hypothesis are discussed.