A lithographic apparatus includes at least one image alignment sensor for receiving radiation projected from an alignment mark on a reticle. Processor processes signals from the sensor(s) to resolve spatial information in the projected alignment mark to establish a reference for measuring positional relationships between a substrate support and the patterning location. Examples of the sensor include line arrays of photodetectors. A single array can resolve spatial information in a plane of the sensor (X, Y direction) and in a perpendicular (Z) direction. At least a final step in establishing the reference position is performed while holding the substrate support stationary. Errors and delays induced by mechanical scanning of prior art sensors are avoided. Alternatively (not illustrated) the sensor is moved for mechanical scanning relative to the substrate support, independently of the main positioning systems.