This discussion paper deals with the ways that IPART assesses local council productivity and efficiency. It explains how IPART determined the productivity factor that was used in setting the rate peg in 2011/12, and how IPART considered council productivity in our assessment of council applications for special variations. Submissions in response to our discussion paper are required by 4 November 2011. We would prefer to receive submissions by email at local_government@ipart.nsw.gov.au. Our normal practice is to make submissions publicly available on our website www.ipart.nsw.gov.au. Improvements to our existing approaches are to be implemented in time for IPART's determination of the rate peg for councils for 2012/13. This is scheduled to be announced in December 2011.