An expansible tunneling apparatus and associated methods for creating an anatomic working space for a surgical procedure. Various apparatus permitting observation during tunneling and balloon dissection are disclosed. In one embodiment, a tubular member has a bore extending therethrough and an open distal end. A lip is formed in the distal end of the tubular member to capture the distal tip of a laparoscope inserted into the tubular member to permit observation of the procedure during tunneling to a desired location and balloon inflation. An elongated neck of the balloon is secured to the tunneling member, and permits the tubular member to be withdrawn slightly from the balloon after inflation to facilitate observation. After the balloon has been advanced to the desired location in the body it is inflated to dissect tissue and create an operating space. Various balloon constructions and a reusable design are also disclosed.