A salient feature of the insect olfactory system is its ability to detect and interpret simultaneously the identity and concentration of an odorant signal along with the temporal stimulus cues that are essential for accurate odorant tracking. The olfactory system of the cockroach utilizes two parallel pathways for encoding of odorant identity and the moment-to-moment succession of odorant concentrations as well as the rate at which concentration changes. This separation originates at the peripheral level of the ORNs (olfactory receptor neurons) which are localized in basiconic and trichoid sensilla. The graded activity of ORNs in the basiconic sensilla provides the variable for the combinatorial representation of odorant identity. The antagonistically responding ON and OFF ORNs in the trichoid sensilla transmit information about concentration increments and decrements with excitatory signals. Each ON and OFF ORN adjusts its gain for odorant concentration and its rate of change to the temporal dynamics of the odorant signal: as the rate of change diminishes, both ORNs improve their sensitivity for the rate of change at the expense of the sensitivity for the instantaneous concentration. This suggests that the ON and OFF ORNs are optimized to detect minute fluctuations or even creeping changes in odorant concentration.