diff --git a/contracts/colony/Colony.sol b/contracts/colony/Colony.sol
index b674da187e..e92e6c25b3 100755
--- a/contracts/colony/Colony.sol
+++ b/contracts/colony/Colony.sol
@@ -112,10 +112,11 @@ contract Colony is BasicMetaTransaction, ColonyStorage, PatriciaTreeProofs {
     setRoleAssignmentFunction(bytes4(keccak256("setTaskEvaluatorRole(uint256,address)")));
     setRoleAssignmentFunction(bytes4(keccak256("setTaskWorkerRole(uint256,address)")));
 
-    // Initialise the root domain
+    // Initialise the local skill and domain trees
     IColonyNetwork colonyNetwork = IColonyNetwork(colonyNetworkAddress);
-    uint256 rootLocalSkill = colonyNetwork.getSkillCount();
-    initialiseDomain(rootLocalSkill);
+    uint256 rootDomainSkill = colonyNetwork.getSkillCount();
+    initialiseDomain(rootDomainSkill);
+    initialiseRootLocalSkill();
 
     // Set initial colony reward inverse amount to the max indicating a zero rewards to start with
     rewardInverse = 2**256 - 1;
@@ -272,6 +273,23 @@ contract Colony is BasicMetaTransaction, ColonyStorage, PatriciaTreeProofs {
     IColonyNetwork(colonyNetworkAddress).uninstallExtension(_extensionId);
   }
 
+  function addLocalSkill() public stoppable auth {
+    uint256 newLocalSkill = IColonyNetwork(colonyNetworkAddress).addSkill(rootLocalSkill);
+    localSkills[newLocalSkill] = LocalSkill({ exists: true, deprecated: false });
+
+    emit LocalSkillAdded(msg.sender, newLocalSkill);
+  }
+
+  function deprecateLocalSkill(uint256 _localSkillId, bool _deprecated) public stoppable auth {
+    localSkills[_localSkillId].deprecated = _deprecated;
+
+    emit LocalSkillDeprecated(msg.sender, _localSkillId, _deprecated);
+  }
+
+  function getRootLocalSkill() public view returns (uint256) {
+    return rootLocalSkill;
+  }
+
   function addDomain(uint256 _permissionDomainId, uint256 _childSkillIndex, uint256 _parentDomainId) public
   stoppable
   domainNotDeprecated(_parentDomainId)
@@ -289,13 +307,13 @@ contract Colony is BasicMetaTransaction, ColonyStorage, PatriciaTreeProofs {
 
     uint256 parentSkillId = domains[_parentDomainId].skillId;
 
-    // Setup new local skill
+    // Setup new domain skill
     IColonyNetwork colonyNetwork = IColonyNetwork(colonyNetworkAddress);
     // slither-disable-next-line reentrancy-no-eth
-    uint256 newLocalSkill = colonyNetwork.addSkill(parentSkillId);
+    uint256 newDomainSkill = colonyNetwork.addSkill(parentSkillId);
 
     // Add domain to local mapping
-    initialiseDomain(newLocalSkill);
+    initialiseDomain(newDomainSkill);
 
     if (keccak256(abi.encodePacked(_metadata)) != keccak256(abi.encodePacked(""))) {
       emit DomainMetadata(msgSender(), domainCount, _metadata);
@@ -384,6 +402,14 @@ contract Colony is BasicMetaTransaction, ColonyStorage, PatriciaTreeProofs {
     ColonyAuthority colonyAuthority = ColonyAuthority(address(authority));
     bytes4 sig;
 
+    sig = bytes4(keccak256("addLocalSkill()"));
+    colonyAuthority.setRoleCapability(uint8(ColonyRole.Root), address(this), sig, true);
+
+    sig = bytes4(keccak256("deprecateLocalSkill(uint256,bool)"));
+    colonyAuthority.setRoleCapability(uint8(ColonyRole.Root), address(this), sig, true);
+
+    if (rootLocalSkill == 0) initialiseRootLocalSkill();
+
     sig = bytes4(keccak256("deprecateDomain(uint256,uint256,uint256,bool)"));
     colonyAuthority.setRoleCapability(uint8(ColonyRole.Architecture), address(this), sig, true);
   }
@@ -462,6 +488,11 @@ contract Colony is BasicMetaTransaction, ColonyStorage, PatriciaTreeProofs {
     return tokenApprovalTotals[_token];
   }
 
+  function initialiseRootLocalSkill() internal {
+    assert(rootLocalSkill == 0);
+    rootLocalSkill = IColonyNetwork(colonyNetworkAddress).initialiseRootLocalSkill();
+  }
+
   function initialiseDomain(uint256 _skillId) internal skillExists(_skillId) {
     domainCount += 1;
     // Create a new funding pot
diff --git a/contracts/colony/ColonyAuthority.sol b/contracts/colony/ColonyAuthority.sol
index f9a703dca1..ff3ac4927e 100644
--- a/contracts/colony/ColonyAuthority.sol
+++ b/contracts/colony/ColonyAuthority.sol
@@ -120,6 +120,8 @@ contract ColonyAuthority is CommonAuthority {
     addRoleCapability(ARBITRATION_ROLE, "setExpenditureMetadata(uint256,uint256,uint256,string)");
 
     // Added in colony v9 (f-lwss)
+    addRoleCapability(ROOT_ROLE, "addLocalSkill()");
+    addRoleCapability(ROOT_ROLE, "deprecateLocalSkill(uint256,bool)");
     addRoleCapability(ARCHITECTURE_ROLE, "deprecateDomain(uint256,uint256,uint256,bool)");
   }
 
diff --git a/contracts/colony/ColonyDataTypes.sol b/contracts/colony/ColonyDataTypes.sol
index bead4535f1..8456f067d2 100755
--- a/contracts/colony/ColonyDataTypes.sol
+++ b/contracts/colony/ColonyDataTypes.sol
@@ -241,6 +241,17 @@ interface ColonyDataTypes {
   /// @param taskId Id of the canceled task
   event TaskCanceled(uint256 indexed taskId);
 
+  /// @notice Event logged when a new local skill is added
+  /// @param agent The address that is responsible for triggering this event
+  /// @param localSkillId Id of the newly-created local skill
+  event LocalSkillAdded(address agent, uint256 localSkillId);
+
+  /// @notice Event logged when a new local skill is added
+  /// @param agent The address that is responsible for triggering this event
+  /// @param localSkillId Id of the newly-created local skill
+  /// @param deprecated Deprecation status of the local skill
+  event LocalSkillDeprecated(address agent, uint256 localSkillId, bool deprecated);
+
   /// @notice Event logged when a new Domain is added
   /// @param agent The address that is responsible for triggering this event
   /// @param domainId Id of the newly-created Domain
@@ -418,4 +429,9 @@ interface ColonyDataTypes {
     uint256 fundingPotId;
     bool deprecated;
   }
+
+  struct LocalSkill {
+    bool exists;
+    bool deprecated;
+  }
 }
diff --git a/contracts/colony/ColonyExpenditure.sol b/contracts/colony/ColonyExpenditure.sol
index e817981669..85e03da6a4 100644
--- a/contracts/colony/ColonyExpenditure.sol
+++ b/contracts/colony/ColonyExpenditure.sol
@@ -192,8 +192,11 @@ contract ColonyExpenditure is ColonyStorage {
       );
 
       Skill memory skill = colonyNetworkContract.getSkill(_skillIds[i]);
-      require(skill.globalSkill, "colony-not-global-skill");
-      require(!skill.deprecated, "colony-deprecated-global-skill");
+      LocalSkill memory localSkill = localSkills[_skillIds[i]];
+
+      require(skill.globalSkill || localSkill.exists, "colony-not-valid-skill");
+      require(!skill.globalSkill || !skill.deprecated, "colony-deprecated-global-skill");
+      require(!localSkill.exists || !localSkill.deprecated, "colony-deprecated-local-skill");
 
       // We only allow setting of the first skill here.
       // If we allow more in the future, make sure to have a hard limit that
diff --git a/contracts/colony/ColonyStorage.sol b/contracts/colony/ColonyStorage.sol
index 1a39a55b4b..51463297f3 100755
--- a/contracts/colony/ColonyStorage.sol
+++ b/contracts/colony/ColonyStorage.sol
@@ -107,6 +107,9 @@ contract ColonyStorage is ColonyDataTypes, ColonyNetworkDataTypes, DSMath, Commo
   uint256 constant METATRANSACTION_NONCES_SLOT = 35;
   mapping(address => uint256) metatransactionNonces; // Storage slot 35
 
+  uint256 rootLocalSkill; // Storage slot 36
+  mapping (uint256 => LocalSkill) localSkills; // Storage slot 37
+
   // Constants
 
   uint256 constant MAX_PAYOUT = 2**128 - 1; // 340,282,366,920,938,463,463 WADs
diff --git a/contracts/colony/IColony.sol b/contracts/colony/IColony.sol
index 10245ec208..4ee0219a0e 100644
--- a/contracts/colony/IColony.sol
+++ b/contracts/colony/IColony.sol
@@ -282,6 +282,18 @@ interface IColony is ColonyDataTypes, IRecovery, IBasicMetaTransaction {
   /// @param extensionId keccak256 hash of the extension name, used as an indentifier
   function uninstallExtension(bytes32 extensionId) external;
 
+  /// @notice Add a new local skill for the colony. Secured function to authorised members.
+  function addLocalSkill() external;
+
+  /// @notice Deprecate a local skill for the colony. Secured function to authorised members.
+  /// @param localSkillId Id for the local skill
+  /// @param deprecated Deprecation status to set for the skill
+  function deprecateLocalSkill(uint256 localSkillId, bool deprecated) external;
+
+  /// @notice Get the root local skill id
+  /// @return rootLocalSkill The root local skill id
+  function getRootLocalSkill() external view returns (uint256 rootLocalSkill);
+
   /// @notice Add a colony domain, and its respective local skill under skill with id `_parentSkillId`.
   /// New funding pot is created and associated with the domain here.
   /// @param _permissionDomainId The domainId in which I have the permission to take this action
diff --git a/contracts/colonyNetwork/ColonyNetwork.sol b/contracts/colonyNetwork/ColonyNetwork.sol
index ce15c6624e..78ce2dc660 100644
--- a/contracts/colonyNetwork/ColonyNetwork.sol
+++ b/contracts/colonyNetwork/ColonyNetwork.sol
@@ -280,6 +280,14 @@ contract ColonyNetwork is BasicMetaTransaction, ColonyNetworkStorage {
     skills[_skillId].deprecated = true;
   }
 
+  function initialiseRootLocalSkill() public
+  stoppable
+  calledByColony
+  returns (uint256)
+  {
+    return skillCount++;
+  }
+
   function appendReputationUpdateLog(address _user, int _amount, uint _skillId) public
   stoppable
   calledByColony
@@ -366,7 +374,7 @@ contract ColonyNetwork is BasicMetaTransaction, ColonyNetworkStorage {
 
     colonyAuthority.setOwner(address(etherRouter));
 
-    // Initialise the root (domain) local skill with defaults by just incrementing the skillCount
+    // Initialise the domain tree with defaults by just incrementing the skillCount
     skillCount += 1;
     colonyCount += 1;
     colonies[colonyCount] = address(colony);
diff --git a/contracts/colonyNetwork/IColonyNetwork.sol b/contracts/colonyNetwork/IColonyNetwork.sol
index 98ef8a5fed..bdaa309690 100644
--- a/contracts/colonyNetwork/IColonyNetwork.sol
+++ b/contracts/colonyNetwork/IColonyNetwork.sol
@@ -100,6 +100,10 @@ interface IColonyNetwork is ColonyNetworkDataTypes, IRecovery, IBasicMetaTransac
   /// @param _skillId Id of the skill
   function deprecateSkill(uint256 _skillId) external;
 
+  /// @notice Initialise the local skills tree for a colony
+  /// @return rootLocalSkillId The root local skill
+  function initialiseRootLocalSkill() external returns (uint256 rootLocalSkillId);
+
   /// @notice Adds a reputation update entry to log.
   /// @dev Errors if it is called by anyone but a colony or if skill with id `_skillId` does not exist or.
   /// @param _user The address of the user for the reputation update
diff --git a/docs/_Interface_IColony.md b/docs/_Interface_IColony.md
index 28cc6b2cf2..dda24d5622 100644
--- a/docs/_Interface_IColony.md
+++ b/docs/_Interface_IColony.md
@@ -38,6 +38,13 @@ Add a colony domain, and its respective local skill under skill with id `_parent
 |_metadata|string|Metadata relating to the domain. Expected to be the IPFS hash of a JSON blob, but not enforced by the contracts.
 
 
+### `addLocalSkill`
+
+Add a new local skill for the colony. Secured function to authorised members.
+
+
+
+
 ### `addPayment`
 
 Add a new payment in the colony. Secured function to authorised members.
@@ -276,6 +283,19 @@ Set the deprecation of an extension in a colony. Secured function to authorised
 |deprecated|bool|Whether to deprecate the extension or not
 
 
+### `deprecateLocalSkill`
+
+Deprecate a local skill for the colony. Secured function to authorised members.
+
+
+**Parameters**
+
+|Name|Type|Description|
+|---|---|---|
+|localSkillId|uint256|Id for the local skill
+|deprecated|bool|Deprecation status to set for the skill
+
+
 ### `editColony`
 
 Called to change the metadata associated with a colony. Expected to be a IPFS hash of a JSON blob, but not enforced to any degree by the contracts
@@ -796,6 +816,18 @@ Get useful information about specific reward payout.
 |---|---|---|
 |rewardPayoutCycle|RewardPayoutCycle|RewardPayoutCycle, containing propertes:  `reputationState` Reputation root hash at the time of creation,  `colonyWideReputation` Colony wide reputation in `reputationState`,  `totalTokens` Total colony tokens at the time of creation,  `amount` Total amount of tokens taken aside for reward payout,  `tokenAddress` Token address,  `blockTimestamp` Block number at the time of creation.
 
+### `getRootLocalSkill`
+
+Get the root local skill id
+
+
+
+**Return Parameters**
+
+|Name|Type|Description|
+|---|---|---|
+|rootLocalSkill|uint256|The root local skill id
+
 ### `getTask`
 
 Get a task with id `_id`
diff --git a/docs/_Interface_IColonyNetwork.md b/docs/_Interface_IColonyNetwork.md
index d400daf329..0f3ac7e3e1 100644
--- a/docs/_Interface_IColonyNetwork.md
+++ b/docs/_Interface_IColonyNetwork.md
@@ -708,6 +708,18 @@ Creates initial inactive reputation mining cycle.
 
 
 
+### `initialiseRootLocalSkill`
+
+Initialise the local skills tree for a colony
+
+
+
+**Return Parameters**
+
+|Name|Type|Description|
+|---|---|---|
+|rootLocalSkillId|uint256|The root local skill
+
 ### `installExtension`
 
 Install an extension in a colony. Can only be called by a Colony.
diff --git a/helpers/constants.js b/helpers/constants.js
index 8fef58ef48..98dcc91cce 100644
--- a/helpers/constants.js
+++ b/helpers/constants.js
@@ -66,7 +66,7 @@ const DECAY_RATE = {
   DENOMINATOR: new BN("1000000000000000"),
 };
 
-const GLOBAL_SKILL_ID = new BN("3"); // Not a root global skill ID or anything, just the first global skill's ID
+const GLOBAL_SKILL_ID = new BN("4"); // Not a root global skill ID or anything, just the first global skill's ID
 
 module.exports = {
   UINT256_MAX,
diff --git a/helpers/test-data-generator.js b/helpers/test-data-generator.js
index dff585d955..2558e72261 100644
--- a/helpers/test-data-generator.js
+++ b/helpers/test-data-generator.js
@@ -18,6 +18,7 @@ import {
   WORKER_ROLE,
   SPECIFICATION_HASH,
   DELIVERABLE_HASH,
+  GLOBAL_SKILL_ID,
 } from "./constants";
 
 import { getTokenArgs, web3GetAccounts, getChildSkillIndex, web3SignTypedData } from "./test-helper";
@@ -35,7 +36,7 @@ const Resolver = artifacts.require("Resolver");
 const MetaTxToken = artifacts.require("MetaTxToken");
 const IColonyNetwork = artifacts.require("IColonyNetwork");
 
-export async function makeTask({ colonyNetwork, colony, hash = SPECIFICATION_HASH, domainId = 1, skillId = 3, dueDate = 0, manager }) {
+export async function makeTask({ colonyNetwork, colony, hash = SPECIFICATION_HASH, domainId = 1, skillId = GLOBAL_SKILL_ID, dueDate = 0, manager }) {
   const accounts = await web3GetAccounts();
   manager = manager || accounts[0]; // eslint-disable-line no-param-reassign
 
diff --git a/migrations/8_setup_meta_colony.js b/migrations/8_setup_meta_colony.js
index 1d9296395c..c2afc6fc44 100644
--- a/migrations/8_setup_meta_colony.js
+++ b/migrations/8_setup_meta_colony.js
@@ -109,7 +109,7 @@ module.exports = async function (deployer, network, accounts) {
   await colonyNetwork.startNextCycle();
 
   const skillCount = await colonyNetwork.getSkillCount();
-  assert.equal(skillCount.toNumber(), 3);
+  assert.equal(skillCount.toNumber(), 4);
 
   console.log("### Meta Colony created at", metaColony.address);
 };
diff --git a/test/contracts-network/colony-expenditure.js b/test/contracts-network/colony-expenditure.js
index 9039f98083..1c3e5297d7 100644
--- a/test/contracts-network/colony-expenditure.js
+++ b/test/contracts-network/colony-expenditure.js
@@ -229,6 +229,32 @@ contract("Colony Expenditure", (accounts) => {
       );
     });
 
+    it("should allow owners to update a slot skill with a local skill", async () => {
+      await colony.addLocalSkill();
+      const localSkillId = await colonyNetwork.getSkillCount();
+
+      await colony.setExpenditureSkill(expenditureId, SLOT0, localSkillId, { from: ADMIN });
+
+      expenditureSlot = await colony.getExpenditureSlot(expenditureId, SLOT0);
+      expect(expenditureSlot.skills[0]).to.eq.BN(localSkillId);
+    });
+
+    it("should not allow owners to update a slot skill with a local skill from a different colony", async () => {
+      const { colony: otherColony } = await setupRandomColony(colonyNetwork);
+      await otherColony.addLocalSkill();
+      const localSkillId = await colonyNetwork.getSkillCount();
+
+      await checkErrorRevert(colony.setExpenditureSkill(expenditureId, SLOT0, localSkillId, { from: ADMIN }), "colony-not-valid-skill");
+    });
+
+    it("should not allow owners to update a slot skill with a deprecated local skill", async () => {
+      await colony.addLocalSkill();
+      const localSkillId = await colonyNetwork.getSkillCount();
+      await colony.deprecateLocalSkill(localSkillId, true);
+
+      await checkErrorRevert(colony.setExpenditureSkill(expenditureId, SLOT0, localSkillId, { from: ADMIN }), "colony-deprecated-local-skill");
+    });
+
     it("should not allow owners to update many slot skills with nonexistent skills", async () => {
       await checkErrorRevert(colony.setExpenditureSkills(expenditureId, [SLOT0], [100], { from: ADMIN }), "colony-expenditure-skill-does-not-exist");
     });
diff --git a/test/contracts-network/colony.js b/test/contracts-network/colony.js
index 017a66521b..9418c4052f 100755
--- a/test/contracts-network/colony.js
+++ b/test/contracts-network/colony.js
@@ -169,6 +169,23 @@ contract("Colony", (accounts) => {
     });
   });
 
+  describe("when adding local skills", () => {
+    it("should log the LocalSkillAdded event", async () => {
+      const tx = await colony.addLocalSkill();
+
+      const skillCount = await colonyNetwork.getSkillCount();
+      await expectEvent(tx, "LocalSkillAdded", [accounts[0], skillCount]);
+    });
+
+    it("should allow root users to deprecate local skills", async () => {
+      await colony.addLocalSkill();
+      const skillCount = await colonyNetwork.getSkillCount();
+
+      const tx = await colony.deprecateLocalSkill(skillCount, true);
+      await expectEvent(tx, "LocalSkillDeprecated", [accounts[0], skillCount, true]);
+    });
+  });
+
   describe("when adding domains", () => {
     it("should log DomainAdded and FundingPotAdded and DomainMetadata events", async () => {
       let tx = await colony.addDomain(1, UINT256_MAX, 1);