We propose a normative model for spatial representation in the hippocampal formation that combines optimality principles, such as maximizing coding range and spatial information per neuron, with an algebraic framework for computing in distributed representation. Spatial position is encoded in a residue number system, with individual residues represented by high-dimensional, complex-valued vectors. These are composed into a single vector representing position by a similarity-preserving, conjunctive vector-binding operation. Self-consistency between the vectors representing position and the individual residues is enforced by a modular attractor network whose modules correspond to the grid cell modules in entorhinal cortex. The vector binding operation can also be used to bind different contexts to spatial representations, yielding a model for entorhinal cortex and hippocampus. We provide model analysis of scaling, similarity preservation and convergence behavior as well as experiments demonstrating noise robustness, sub-integer resolution in representing position, and path integration. The model formalizes the computations in the cognitive map and makes testable experimental predictions.