Procedural displacement in cycles

I’ve made a procedural heightmap in cycles and trying to apply it to the mesh without baking. Connecting it to displacement input in material node editor only results in creating normal map for the mesh without real displacement. Is there any way to somehow supply procedural texture to displacement modifier without baking, or making same effect as displace modifier does, but only in material editor?

Cycles has basic displacement support which you can enable ‘per object’ in the object properties (don’t forget to change the feature set to ‘experimental’ first).