This paper proposes a linear dynamic anti-windup strategy for the alleviation of performance and stability problems in systems which are linear apart from saturating sensors. Unlike anti-windup compensation for systems subject to actuator saturation, there is no agreed architecture for applying anti-windup to systems with sensor saturation and therefore attention is devoted to the discussion of various candidate configurations which can be interpreted as a particular choice of a static nonlinear map. The main results of the paper give existence conditions for compensators which yield global exponential stability and finite L 2 gain of the overall nonlinear closed-loop system. The existence conditions are different to those which have appeared hitherto in the literature.