A Functional Theory of Local Names Martin Odersky Revised from a paper presented at the 21st ACM Symposium on Principles of Programming Languages, January 1994, pp 48-58. $\lambda\nu$ is an extension of the $\lambda$-calculus with a binding construct for local names. The extension has properties analogous to classical $\lambda$-calculus and preserves all observational equivalences of $\lambda$. It is useful as a basis for modeling wide-spectrum languages that build on a functional core.