A number of issues arise when considering the positive and normative implications of local environmental policy making. This paper provides an overview of some of the issues and implications. These vary depending on whether local jurisdictions are charged with determining the stringency of policies or instead stringency is determined at a higher level of government and the local role focuses on implementation and the design of cost-effective measures for achieving the required goals. Key issues include both physical and economic spillovers across jurisdictions, and the extent to which stringency can be differentiated based on local conditions or preferences.