We have observed that the electrical switching of a pixel in a twisted nematic device can induce an optical response in neighboring pixels. This response is a transient effect that decays a short time after the switching occurs. The transient is of comparable magnitude for both turn-on and turn-off of the switching field, but of opposite sign. Additionally, the response is different at different locations in the effected pixel.We have traced the origin of this effect to the flow induced by director reorientation in the electrically switched pixel. We provide both a qualitative and quantitative description of this effect. Basically, because of the incompressibility of the liquid crystal, flow in the activated pixel produces flow in neighboring pixels. This flow causes a director reorientation that can easily be detected optically. We present a quasi-one-dimensional model based on the Erickson-Leslie equations that describes all of the main features of the empirical observations. This effect has significant implications for the dynamic performance of LCDs. This is particularly the case for LCOS microdisplay devices where the pixel dimensions are comparable to the thickness of the liquid crystal cell. We show that the effect may be mitigated in some situations by proper choice of alignment direction.