The local finance of Korea has shown an increase in the scale and the rate of growth. As a result, the weight of the local finance in GNP is 12.1% in 1996, and that in the total finance comes up to 35.6％. The scale of the local finance including the general account and the special account has increased three times from 21.7trillion won in 1990 to 66.6trillion won in 1997. Meanwhile, the central finance-oriented fiscal structure has changed into local finance-oriented structure. The fiscal activities of local governments have been given a increased weight in national economy and have had a great influence on the wealth of the residents, because the commodities and services that local governments provide have a close relation to the daily life of residents, The fiscal activities of local government wholly depend on the fiscal power of local governments. Therefore, considering the fiscal scale of local governments rapidly expanding, an increasing interest has been taken in the information necessary to analyzing and evaluating the fiscal power of local gevernments whose social and economical environments such as natural condition, industrial structure, population, and so on are different from one another. Many studies have used fragmentary indexes in evaluating fiscal power. Most of these studies show that it if important to develop appropriate indexes and secure the objectivity of Indexes and the trust of indexes. So it is necessary to develop the Indexes which can evaluate the fiscal state of local governments objectively and generally, and apply properly to the reality The object of this article, by trying applying the index that can measure the fiscal power of local governments objectively to Cheong-ju, Chung-ju, Je-cheon, is to present the basic material for improvement of policies and local economy.