In this article the author outline briefly the evolution of the existing system of financing local authorities in Ireland. He further discusses local taxation in the context of national taxation and identify the options that are available in any reform of local finance. While the matter of local taxation was excluded from the terms of reference of the Barrington Committee on local government reform, this question was raised by a very large proportion of individuals and bodies who made submission to that committee. Reform of the system of financing local authorities is an essential component of overall reform if that reform is to mean anything. For this reason the author believes that it is important to look