Spike-driven adaptation involves intracellular mechanisms that are initiated by spiking and lead to the subsequent reduction of spiking rate. One of its consequences is the temporal patterning of spike trains, as it imparts serial correlations between interspike intervals in baseline activity. Surprisingly the hidden adaptation states that lead to these correlations themselves exhibit quasi-independence. This talk will first discuss recent findings about the role of such adaptation in suppressing noise and extending sensory detection to weak stimuli that leave the firing rate unchanged. Further, a matching of the post-synaptic responses to the pre-synaptic adaptation time scale enables a recovery of the quasi-independence property, and can explain observations of correlations between post-synaptic EPSPs and behavioural detection thresholds. We then consider the involvement of spike-driven adaptation in the representation of intervals between sensory events. We discuss the possible link of this time-stamping mechanism to the conversion of egocentric to allocentric coordinates. The heterogeneity of the population parameters enables the representation and Bayesian decoding of time sequences of events which may be put to good use in path integration and hilus neuron function in hippocampus.