All network dynamics emerge from the complex interaction between the intrinsic membrane properties of network neurons and their synaptic connections. Nervous systems contain numerous amines and neuropeptides that function to both modulate the strength of synaptic connections and the intrinsic properties of network neurons. Consequently network dynamics can be tuned and configured in different ways, as a function of the actions of neuromodulators. General principles of the organization of modulatory systems in nervous systems include: (a) many neurons and networks are multiply modulated, (b) there is extensive convergence and divergence in modulator action, and (c) some modulators may be released extrinsically to the modulated circuit, while others may be released by some of the circuit neurons themselves, and act intrinsically. Some of the computational consequences of these features of modulator action are discussed.