diff --git a/core/core.go b/core/core.go
index 8a617015a..3c3da7ad6 100644
--- a/core/core.go
+++ b/core/core.go
@@ -211,6 +211,11 @@ func initIdentity(cfg *config.Identity, peers peer.Peerstore, online bool) (peer
 	if err != nil {
 		return nil, err
 	}
+	self.SetType(peer.Local)
+	self, err = peers.Add(self)
+	if err != nil {
+		return nil, err
+	}
 
 	// when not online, don't need to parse private keys (yet)
 	if online {
diff --git a/core/core_test.go b/core/core_test.go
index fb632d336..8c01b350a 100644
--- a/core/core_test.go
+++ b/core/core_test.go
@@ -4,6 +4,7 @@ import (
 	"testing"
 
 	config "github.com/jbenet/go-ipfs/config"
+	"github.com/jbenet/go-ipfs/peer"
 )
 
 func TestInitialization(t *testing.T) {
@@ -57,6 +58,22 @@ func TestInitialization(t *testing.T) {
 	}
 }
 
+func TestPeerIsLocal(t *testing.T) {
+	t.Log("Ensure that peer is Local after initializing identity")
+
+	online := false
+	peers := peer.NewPeerstore()
+
+	cfg := testIdentity
+	p, err := initIdentity(&cfg, peers, online)
+	if err != nil {
+		t.Fatal(err)
+	}
+	if p.GetType() != peer.Local {
+		t.Fail()
+	}
+}
+
 var testIdentity = config.Identity{
 	PeerID:  "QmNgdzLieYi8tgfo2WfTUzNVH5hQK9oAYGVf6dxN12NrHt",
 	PrivKey: "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",
diff --git a/peer/peer.go b/peer/peer.go
index 5496e610c..fcaadce3a 100644
--- a/peer/peer.go
+++ b/peer/peer.go
@@ -95,10 +95,23 @@ type Peer interface {
 	GetLatency() (out time.Duration)
 	SetLatency(laten time.Duration)
 
+	// Get/SetType indicate whether this is a local or remote peer
+	GetType() Type
+	SetType(Type)
+
 	// Update with the data of another peer instance
 	Update(Peer) error
 }
 
+type Type uint8
+
+const (
+	// Unspecified indicates peer was created without specifying Type
+	Unspecified Type = iota
+	Local
+	Remote
+)
+
 type peer struct {
 	id        ID
 	addresses []ma.Multiaddr
@@ -111,6 +124,9 @@ type peer struct {
 	// within that package, map from ID to latency value.
 	latency time.Duration
 
+	// typ can be Local, Remote, or Unspecified (default)
+	typ Type
+
 	sync.RWMutex
 }
 
@@ -222,6 +238,18 @@ func (p *peer) SetLatency(laten time.Duration) {
 	p.Unlock()
 }
 
+func (p *peer) SetType(t Type) {
+	p.Lock()
+	p.typ = t
+	defer p.Unlock()
+}
+
+func (p *peer) GetType() Type {
+	p.Lock()
+	defer p.Unlock()
+	return p.typ
+}
+
 // LoadAndVerifyKeyPair unmarshalls, loads a private/public key pair.
 // Error if (a) unmarshalling fails, or (b) pubkey does not match id.
 func (p *peer) LoadAndVerifyKeyPair(marshalled []byte) error {
@@ -306,6 +334,8 @@ func (p *peer) Update(other Peer) error {
 
 	p.SetLatency(other.GetLatency())
 
+	p.SetType(other.GetType())
+
 	sk := other.PrivKey()
 	pk := other.PubKey()
 	p.Lock()
diff --git a/peer/peer_test.go b/peer/peer_test.go
index 5ca4bbd4b..4a7aad9e8 100644
--- a/peer/peer_test.go
+++ b/peer/peer_test.go
@@ -55,3 +55,11 @@ func TestStringMethodWithSmallId(t *testing.T) {
 	}
 	p1.String()
 }
+
+func TestDefaultType(t *testing.T) {
+	t.Log("Ensure that peers are initialized to Unspecified by default")
+	p := peer{}
+	if p.GetType() != Unspecified {
+		t.Fatalf("Peer's default type is was not `Unspecified`")
+	}
+}