Real-time displacement measurement techniques are needed to acquire aerodynamic and structural system characteristics in flight. This proposal describes the development of a new type of position sensor which we have termed a Point Coupled Sensor (PCS). This sensor is able to detect the position of a target, typically a small piece of metal or magnetic material, in one or two dimensions. The one dimensional (1-D) or linear embodiment of the sensor is similar in function to the well-known linear variable differential transformer (LVDT). In this configuration, it is anticipated that the PCS will provide similar measurement accuracies, but with significant cost, size and weight reduction. This makes the PCS especially attractive for use in unmanned aerial vehicles (UAV's) and other applications where size and weight are important. The PCS approach can also be implemented as a two-dimensional (2-D) sensor, which may facilitate the measurement of complex surfaces, and holds promise for many new and evolving UAV and aircraft applications such as aeroelastic wings and measuring the position of swept surfaces or moving panels. The PCS two-dimensional concept also offers the potential to introduce novel surface sensor measurement functionality and could conceivably be fabricated within the composite aircraft structure.