Localizing the source of a signal is often as important as deciphering the signal’s message. Localization mechanisms must cope with the challenges of representing the spatial information of weak, noisy signals. Comparing these strategies across modalities and model systems allows a broader understanding of the general principles shaping spatial processing. In this review we focus on the electrosensory system of knifefish and provide an overview of our current understanding of spatial processing in this system, in particular, localization of conspecific signals. We argue that many mechanisms observed in other sensory systems, such as the visual or auditory systems, have comparable implementations in the electrosensory system. Our review therefore describes a field of research with unique opportunities to provide new insights into the principles underlying spatial processing.