The nucleus ventralis lemnisci lateralis pars posterior (VLVp) is the first binaural station in the intensity-processing pathway of the barn owl. Contralateral stimulation excites and ipsilateral stimulation inhibits VLVp cells. The strength of the inhibition declines systematically from dorsal to ventral within the nucleus. Cells selective for different intensity disparities occur in an orderly sequence from dorsal to ventral within each isofrequency lamina. Cells at intermediate depths in the nucleus are selective for a particular narrow range of interaural intensity differences independently of the absolute sound-pressure level. A simple model of the interaction between inhibition and excitation can explain most of the response properties of VLVp neurons. The map of selectivity for intensity disparity is mainly based on the gradient of inhibition.