  The current generation of Imaging Atmospheric telescopes (IACTs) has
demonstrated the power of this observational technique, providing high
sensitivity and an angular resolution of $\sim0.1^{\circ}$ per event above an
energy threshold of $\sim$100 GeV. Planned future arrays of IACTs such as AGIS
or CTA are aiming at significantly improving the angular resolution.
Preliminary results have shown that values down to $\sim 1'$ might be
achievable. Here we present results of Monte-Carlo simulations that aim to
exploring the limits of angular resolution for next generation IACTs and
investigate how the resolution can be optimised by changes to array and
telescope parameters such as the number of pixel in the camera, the field of
view of the camera, the angular pixel size, the mirror size, and also the
telescope separation.
