Neurons in visual cortex are connected not only locally, but also through networks of distal connectivity. These distal networks recruit both excitatory and inhibitory synapses and result in divisive normalization. Normalization is traditionally thought to result from increases in synaptic inhibition. By combining optogenetic stimulation and intracellular recordings in mouse visual cortex, we found that, on the contrary, normalization is a result of a decrease in synaptic excitation.