A touch and hover-sensitive sensor system is provided. The system may include a planar light guide that has a plurality of light sources located along a first edge of the light guide and a plurality of light sensors located along a second edge of the light guide orthogonal to the first edge. The light guide may include light-turning arrangements that are configured to redirect light passing through a first side of the light guide from/along orthogonal directions within the light guide. A controller may illuminate proper subsets of the light sources; light that is emitted from the first side and that encounters an object, e.g., a fingertip, may be reflected back into the first side and then redirected to the light sensors. Depending on the light sensors that detect the highest redirected reflected light intensity and the active light sources, the controller may determine the XY/XYZ location of the object.