At a time when government funding cuts mean that public libraries face an uncertain future and need to make sure they stay relevant to young users and their families, this paper explores what counts as literacy for young children in a public library in a town in the East Midlands, UK. It is based on a study which adopted an ethnographic approach, drawing on Lefebvre's spatial theory to understand how a library space presents literacy to young children and their carers, and how this then shapes the literacy practices and events that happen in this space. The study shows that dominant discourses are bound up in what the library staff understand to be their role in promoting and supporting young children's literacy, and that, often, they organise the space and literacy events in ways that reflect these discourses. However this paper argues that it is not only the library staff that create space in the library, as carers and their children are sometimes seen to create alternative spaces which challenge and subvert the way the librarians would like the space to be used and understood.