A neural-network model is described that produces a rate-place representation from auditory nerve output that is of considerably higher frequency resolution than that from a standard auditory peripheral model. The neural circuits used are called Lateral Inhibitory Networks. They have long been known to be responsible for early spatio-temporal processing in the visual system. Here we investigate the use of such networks for early auditory processing. We describe the analytical basis, problems with various variants of the model, and show some initial results yielded by the research.