The results of the 1994 local elections in Taiwan did not come as a surprise to many people. However, they have had a profound impact on Taiwan's political layout. The Kuomintang (KMT, the Nationalist Party of China) is still firmly in control although it lost ifs dominant position in Taipei, the Democratic Progressive Party (DPP) has become more entrenched into the establishment with significant gains, and the Chinese New Party (CNP) has obtained a strong position in the Taipei metropolitan area. This paper analyzes the gains and losses of the three major political groupings in this particular election and their potential for future development. It also identifies two generally neglected areas where constitutional crises might arise because of the badly structured government system.