The elongated structure of the hippocampus is critically involved in brain functions of profound importance. The segregation of functions along the longitudinal (septotemporal or dorsoventral) axis of the hippocampus is a slowly developed concept and currently is a widely accepted idea. The segregation of neuroanatomical connections along the hippocampal long axis can provide a basis for the interpretation of the functional segregation. However, an emerging and growing body of data strongly suggests the existence of endogenous diversification in the properties of the local neural network along the long axis of the hippocampus. In particular, recent electrophysiological research provides compelling evidence demonstrating constitutively increased network excitability in the ventral hippocampus with important implications for the endogenous initiation and propagation of physiological hippocampal oscillations yet, under favorable conditions it can also drive the local network towards hyperexcitability. In addition, important specializations in the properties of dorsal and ventral hippocampal synapses may support an optimal signal processing that contributes to the effective execution of the distinct functional roles played by the two hippocampal segments.