The arts and cultural sector has historically relied on funding from state and federal levels of government. Increasingly, however, local government has become a source of distinctive cultural policy making and a provider of significant funding for arts and cultural activities. The paper notes the relative absence of analyses of the role of local government in policy literature. It argues that with the recent proliferation of dedicated local cultural policies and plans, the attention of scholars is warranted. Through an analysis of the cultural plans of five local councils around Australia, the paper argues that the distinctive feature of cultural policy at the local level is a function of local government's proximity to its constituents, flexibility in decision-making and the discretionary nature of its expenditure.