A study of mouse visual cortex relating patterns of excitatory synaptic connectivity to visual response properties of neighbouring neurons shows that, after eye opening, local connectivity reorganizes extensively: more connections form selectively between neurons with similar visual responses and connections are eliminated between visually unresponsive neurons, but the overall connectivity rate does not change. Intrinsic and experiential factors guide the patterning of neural pathways and the establishment of sensory response properties during postnatal development. Although sensory processing is known to depend on the precise wiring of cortical microcircuits, how this functional connectivity develops remains unclear. Based on electrical recordings of neighbouring neurons and changing network dynamics measures using calcium imaging, Thomas Mrsic-Flogel and colleagues offer a proposal that neuronal feature preference is initially acquired before sensory experience in a feed-forward manner, and with patterned input later driving the formation of precision within the network following the appropriate re-arrangement of synaptic connections. Sensory processing occurs in neocortical microcircuits in which synaptic connectivity is highly structured1,2,3,4 and excitatory neurons form subnetworks that process related sensory information5,6. However, the developmental mechanisms underlying the formation of functionally organized connectivity in cortical microcircuits remain unknown. Here we directly relate patterns of excitatory synaptic connectivity to visual response properties of neighbouring layer 2/3 pyramidal neurons in mouse visual cortex at different postnatal ages, using two-photon calcium imaging in vivo and multiple whole-cell recordings in vitro. Although neural responses were already highly selective for visual stimuli at eye opening, neurons responding to similar visual features were not yet preferentially connected, indicating that the emergence of feature selectivity does not depend on the precise arrangement of local synaptic connections. After eye opening, local connectivity reorganized extensively: more connections formed selectively between neurons with similar visual responses and connections were eliminated between visually unresponsive neurons, but the overall connectivity rate did not change. We propose a sequential model of cortical microcircuit development based on activity-dependent mechanisms of plasticity whereby neurons first acquire feature preference by selecting feedforward inputs before the onset of sensory experience—a process that may be facilitated by early electrical coupling between neuronal subsets7,8,9—and then patterned input drives the formation of functional subnetworks through a redistribution of recurrent synaptic connections.