I developed a wideband low-noise optical beam deflection sensor with a photothermal cantilever excitation system for liquid-environment atomic force microscopy. The developed sensor has a 10 MHz bandwidth and 4.7 fm/ ͱ Hz deflection noise density in water. The theoretically limited noise performance ͑i.e., the noise level limited only by the photodiode shot noise͒ has been achieved in liquid for the first time. Owing to the wide bandwidth and the replaceable focus lens design, the sensor is applicable to cantilevers with various dimensions. The deflection noise densities of less than 7.8 fm/ ͱ Hz have been achieved in water for cantilevers with lengths from 35 to 125 m. The ideal amplitude and phase versus frequency curves without distortion are obtained with the developed photothermal excitation system. The excitation system is applicable to relatively stiff cantilevers ͑Ͼ20 N / m͒ in liquid, making it possible to obtain true atomic-resolution images in liquid. True atomic-resolution imaging of mica in water is demonstrated using the developed deflection sensor and the photothermal excitation system.