We recently developed a reduced scaling multireference configuration interaction (MRCI) method based on local correlation in the internal (occupied) and external (virtual) orbital spaces. This technique can be used, e.g., to predict bond dissociation energies in large molecules with reasonable accuracy. However, the inherent lack of size extensivity of truncated CI is a disadvantage that in principle worsens as the system size grows. Here we implement an a priori size-extensive modification of local MRCI known as the averaged coupled pair functional (ACPF) method. We demonstrate that local MR-ACPF recovers more correlation energy than local MRCI, in keeping with trends observed previously for nonlocal ACPF. We test the size extensivity of local ACPF on noninteracting He atoms and a series of hydrocarbons. Basis set and core correlation effects are explored, as well as bond breaking in a variety of organic molecules. The local MR-ACPF method proves to be a useful tool for investigating large molecules and represents a further improvement in predictive accuracy over local MRCI. (C) 2004 American Institute of Physics.