Three loudspeakers, equidistant from the subject, one in front and one at 40° to each side, when employed in pairs with the speakers of the pair in phase, provided three phantom sources to be localized. This method of presenting the stimulus brings about a different relationship between the stimulus factors for localization, time and intensity, from what occurs with a single source. The results show that in the low‐frequency region from 500 to 1200 cps localization is dependent principally upon interaural time differences. In the range from 1200 to 1750 cps, time‐ and intensity‐differences can combine to produce large bias errors. At frequencies from 2000 to 5000 cps, individual differences in sensitivity and other factors appear to destroy any simple relationship between interaural intensity and localization.