Valencia took advantage of a woeful performance from Real Madrid to claim a 2-0 win at home to the defending Spanish champions on Saturday and replace beaten Deportivo Coruna at the top of the table.
Depor's surprise 3-2 defeat at Osasuna handed Valencia the chance to lead the Primera Liga standings and they took it in style, sending Real to their first league defeat of the season.
Rafa Benitez's side went in front after four minutes through Mista and a Ricardo Oliveira strike in the second half clinched a surprisingly comfortable win.
The result proved enough to give Valencia the leadership with 13 points from five games after Deportivo lost their 100 per cent record at Osasuna.
Depor blew their chance of a fifth successive victory by conceding three goals in a nightmare four-minute spell in the first half.
They dropped to second on 12 points with Real Madrid and Osasuna both on 10 in third and fourth respectively.
Barcelona, with eight points from four games, could move up to third with victory away to Atletico Madrid in one of six matches being played on Sunday.
EARLY REWARD
Valencia, the 2002 champions, came at Real with all guns blazing and were rewarded with an early goal.
Argentine playmaker Pablo Aimar brought the ball forward from midfield and found Jorge Lopez wide on the right. He crossed low into the box and Mista, a former Real Madrid player, nipped in ahead of goalkeeper Iker Casillas to open the scoring.
"Valencia had a much more serious attitude from the start," conceded Real coach Carlos Queiroz.
"They were far more aggressive and the first few minutes decided the game. We have to congratulate Valencia because they played better than we did."
Aimar was at the heart of every Valencia move but he was forced off after 28 minutes with a leg muscle strain.
The home side duly reverted to a more defensive approach but Real failed to make any headway, with Zinedine Zidane, Ronaldo and David Beckham suffering a collective off-day.
Valencia were content to soak up pressure and hit Real on the break and their second goal arrived after 71 minutes, when Casillas could only block an Oliveira header.
Ruben Baraja smacked the rebound back into the box and the ball broke again for Oliveira to blast the ball home.
Real hardly created a chance in what remained of the game and Valencia claimed victory with plenty to spare.
SHODDY DISPLAY
Deportivo were also guilty of a shoddy performance away to Osasuna.
Patxi Punal got the home side's first goal with a penalty on 21 minutes after Hector had needlessly brought down Moroccan midfielder Moha on a run into the box.
A mistake from Deportivo goalkeeper Jose Molina handed Osasuna their second two minutes later.
Molina, stretching for a cross from the left, dropped the ball at the feet of Ibrahima Bakayoko, who tapped it across for Ivan Rosado to make the score 2-0.
Within a minute, Osasuna were three up, thanks to another Deportivo mistake. Valdo, the former Real Madrid striker, smacked a shot against the bar and Hector headed the ball straight into his own net.
Depor were stung into action and Albert Luque's powerful header from Victor's right-wing cross in the 28th minute gave the visitors some hope of a comeback.
Osasuna defended bravely for the remainder of the game, though, and despite Pandiani's late strike they continued their excellent start to the season with a third win in five games.
