This relates to a capacitive sensor panel that is able to dynamically reconfigure its sensor size and shape for proximity and/or distance to enable hover and gesture detection. Thus, the size and/or shape of the sensors in the panel can differ according to present needs. The sensor panel may dynamically reconfigure its sensor size and shape based on an object's proximity to the panel. The sensor panel may dynamically reconfigure its sensor size and shape based on a gesture detected by the panel. The sensor panel may dynamically reconfigure its sensor size and shape based on an application executing on a device in communication with the panel.