A series of four experiments are reported in which the effect of hippocampal lesions on retention, and the ability to shift responses with changes in reward contingencies was investigated on a spatial discrimination reversal, DRL, and two-choice visual discrimination task. While animals with hippocampal lesions or posterior cortical lesions were deficient in the retention of spatial reversals, the type of error made by each group differed. Contrary to current theories of hippocampal function, animals with hippocampal lesions were not deficient in the abilities required to shift their responses and, in some situations, were actually more flexible than controls. The results are discussed in terms of an inhibition model of hippocampal function. It is suggested that the role of the hippocampus is to inhibit stimulus-response bonds.