A sequence of sounds may be heard as coming from a single source (called fusion or coherence) or from two or more sources (called fission or stream segregation). Each perceived source is called a ‘stream’. When the differences between successive sounds are very large, fission nearly always occurs, whereas when the differences are very small, fusion nearly always occurs. When the differences are intermediate in size, the percept often ‘flips’ between one stream and multiple streams, a property called ‘bistability’. The flips do not generally occur regularly in time. The tendency to hear two streams builds up over time, but can be partially or completely reset by a sudden change in the properties of the sequence or by switches in attention. Stream formation depends partly on the extent to which successive sounds excite different ‘channels’ in the peripheral auditory system. However, other factors can play a strong role; multiple streams may be heard when successive sounds are presented to the same ear and have essentially identical excitation patterns in the cochlea. Differences between successive sounds in temporal envelope, fundamental frequency, phase spectrum and lateralization can all induce a percept of multiple streams. Regularities in the temporal pattern of elements within a stream can help in stabilizing that stream.