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AbstractThe paper defends an account of the context-sensitivity of norms that draws on the resources of counterfactual conditionals. The account combines two assumptions: the assumption that permission is rule-abiding performance in some contextually relevant situations; and the assumption that the contextually relevant situations are picked out by the mechanism that selects the possible worlds relevant for the evaluation of counterfactual conditionals. The account explains the non-monotonicity of permissions and solves a puzzle, raised by Timothy Williamson, about the seeming failure of permissions to distribute over conjunction. In the domain of epistemic norms, the account solves an analogous puzzle and deals successfully with so-called blindspot propositions.