We recently reported (paper presented at ARVO 1997) psychophysical evidence as to contributions of luminance and chromatic mechanism in a hyperacuity task, namely detection of small displacements. Achromatic or chromatic (430, 550, 690 nm) edges were presented on white or chromatic (550 nm) backgrounds, and displacement thresholds measured as a function of luminance contrast. Above 3% (achromatic detection threshold), all conditions yielded nearly identical contrast/threshold curves; we believe a luminance mechanism to be responsible. In chromatic conditions, below 3% contrast, large (>100 s arc) displacements were detectable; presumably chromatic mechanisms are responsible. We have now carried out equivalent physiological experiments. Data were consistent with cells of the magnocellular (MC) pathway underlying the luminance mechanism. Opponent S-cone or parvocellular (PC) cells became responsive to displacements in the chromatic conditions. S-cone cells were very responsive to the 430 nm edge, and responded at low contrasts matching the psychophysical thresholds. L, M-cone opponent cells were responsive to the 690 nm edge, but less so than was expected from the psychophysical data. Our data suggest MC-cells underlie a luminance hyperacuity mechanism. Additional factors (eg cell numerosity) may have to be considered for chromatic spatial mechanisms.