  We show that atomic dipolar effects are detectable in the system that
recently demonstrated two-atom coherent spin dynamics within individual lattice
sites of a Mott state. Based on a two-state approximation for the two-atom
internal states and relying on a variational approach, we have estimated the
spin dipolar effect. Despite the absolute weakness of the dipole-dipole
interaction, it is shown that it leads to experimentally observable effects in
the spin mixing dynamics.
