An optical navigation system having an illuminator housing and a sensor housing that are movably connected at a connection point with a connection mechanism, which may include a pivot. The illuminator housing and the sensor housing may be rotated about the connection point relative to each other so that the optical navigation system may be configured with a desired operating Z-height. The optical navigation system may also include a locking mechanism to lock the illuminator housing and the sensor housing in a predetermined fixed position after the desired operating Z-height has been selected.