Abstract - IX in Taiwan TWNIC and TWIA (or Taiwan Internet Association) decided to initiate a joint project to re-define the basic principle and best practice for local IX operations, and hope to elevate the quality of services in a timely fashion. The project began at mid-2004, and four items have been determined as the scope of the project : 1. Structuring operational mechanism, 2. Improving quality of services, 3. Seeking for reasonable and transparent, and 4. Studying appropriate principle and practices. The project team simulated several cost-benefit models, defined key factors for tier criteria / structure, and designed relevant peering methods which might be acceptable by majority of local ISPs.and also visited major IX-es in the Asia such as JPIX (Japan), KIX (Korea), KINX (Korea), SOX (Singapore), Equinix (Singapore), MIX (Malaysia), etc. Since the volume of local Internet traffic takes about more than 50% out of total in Taiwan, it is definitely not cost-effective to route the Internet packet oversea. On the other hand, nearly 50% of total household in Taiwan have subscribed broadband services, according to recent TWNIC survey report. ISPs require higher bandwidth and better quality while peering with others. Commercial ISPs may also need to manage the peering settlement. So this IX project will provide a win-win solution for both ISPs and the consumers.