diff --git a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/AssignmentGenerator.kt b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/AssignmentGenerator.kt
index dab9bb64651..8cf47c11d4f 100644
--- a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/AssignmentGenerator.kt
+++ b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/AssignmentGenerator.kt
@@ -114,7 +114,7 @@ class AssignmentGenerator(statementGenerator: StatementGenerator) : StatementGen
                 BackingFieldLValue(ktLeft.startOffset, ktLeft.endOffset, descriptor.propertyDescriptor, operator)
             is LocalVariableDescriptor ->
                 if (descriptor.isDelegated)
-                    TODO("Delegated local variable")
+                    DelegatedLocalPropertyLValue(ktLeft.startOffset, ktLeft.endOffset, descriptor, operator)
                 else
                     VariableLValue(ktLeft.startOffset, ktLeft.endOffset, descriptor, operator)
             is PropertyDescriptor ->
diff --git a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/CallGenerator.kt b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/CallGenerator.kt
index 5399a2795b6..d0a8b6a2a78 100644
--- a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/CallGenerator.kt
+++ b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/CallGenerator.kt
@@ -17,6 +17,7 @@
 package org.jetbrains.kotlin.psi2ir.generators
 
 import org.jetbrains.kotlin.descriptors.*
+import org.jetbrains.kotlin.descriptors.impl.LocalVariableDescriptor
 import org.jetbrains.kotlin.ir.expressions.*
 import org.jetbrains.kotlin.psi.KtElement
 import org.jetbrains.kotlin.psi.psiUtil.endOffset
@@ -35,7 +36,7 @@ class CallGenerator(statementGenerator: StatementGenerator): StatementGeneratorE
                 generatePropertyGetterCall(descriptor, startOffset, endOffset, call)
             is VariableDescriptor ->
                 call.callReceiver.call { dispatchReceiverValue, extensionReceiverValue ->
-                    IrGetVariableImpl(startOffset, endOffset, descriptor, operator)
+                    generateGetVariable(startOffset, endOffset, descriptor, operator)
                 }
             is FunctionDescriptor ->
                 generateFunctionCall(descriptor, startOffset, endOffset, operator, call)
@@ -44,6 +45,12 @@ class CallGenerator(statementGenerator: StatementGenerator): StatementGeneratorE
         }
     }
 
+    fun generateGetVariable(startOffset: Int, endOffset: Int, descriptor: VariableDescriptor, operator: IrOperator? = null) =
+            if (descriptor is LocalVariableDescriptor && descriptor.isDelegated)
+                IrCallImpl(startOffset, endOffset, descriptor.type, descriptor.getter!!, operator ?: IrOperator.GET_LOCAL_PROPERTY)
+            else
+                IrGetVariableImpl(startOffset, endOffset, descriptor, operator)
+
     fun generateDelegatingConstructorCall(startOffset: Int, endOffset: Int, call: CallBuilder) : IrExpression {
         val descriptor = call.descriptor
         if (descriptor !is ConstructorDescriptor) throw AssertionError("Constructor expected: $descriptor")
diff --git a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt
index 60d5c34208f..b64c667fde7 100644
--- a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt
+++ b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/StatementGenerator.kt
@@ -255,7 +255,7 @@ class StatementGenerator(
                     CallGenerator(this).generateCall(expression.startOffset, expression.endOffset, pregenerateCall(resolvedCall))
                 }
                 is VariableDescriptor ->
-                    IrGetVariableImpl(expression.startOffset, expression.endOffset, descriptor)
+                    CallGenerator(this).generateGetVariable(expression.startOffset, expression.endOffset, descriptor)
                 else ->
                     IrDummyExpression(
                             expression.startOffset, expression.endOffset, getInferredTypeWithImplicitCastsOrFail(expression),
diff --git a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/intermediate/DelegatedLocalPropertyLValue.kt b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/intermediate/DelegatedLocalPropertyLValue.kt
new file mode 100644
index 00000000000..4dad1c65dde
--- /dev/null
+++ b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/intermediate/DelegatedLocalPropertyLValue.kt
@@ -0,0 +1,43 @@
+/*
+ * Copyright 2010-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.psi2ir.intermediate
+
+import org.jetbrains.kotlin.descriptors.VariableDescriptorWithAccessors
+import org.jetbrains.kotlin.ir.expressions.IrCallImpl
+import org.jetbrains.kotlin.ir.expressions.IrExpression
+import org.jetbrains.kotlin.ir.expressions.IrOperator
+import org.jetbrains.kotlin.types.KotlinType
+
+class DelegatedLocalPropertyLValue(
+        val startOffset: Int,
+        val endOffset: Int,
+        val descriptor: VariableDescriptorWithAccessors,
+        val irOperator: IrOperator? = null
+) : LValue, AssignmentReceiver {
+    override val type: KotlinType get() = descriptor.type
+
+    override fun load(): IrExpression =
+            IrCallImpl(startOffset, endOffset, descriptor.type, descriptor.getter!!, irOperator)
+
+    override fun store(irExpression: IrExpression): IrExpression =
+            IrCallImpl(startOffset, endOffset, descriptor.type, descriptor.setter!!, irOperator).apply {
+                putArgument(0, irExpression)
+            }
+
+    override fun assign(withLValue: (LValue) -> IrExpression): IrExpression =
+            withLValue(this)
+}
diff --git a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/expressions/IrOperator.kt b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/expressions/IrOperator.kt
index 1594231ba8c..234273ceb63 100644
--- a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/expressions/IrOperator.kt
+++ b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/expressions/IrOperator.kt
@@ -72,6 +72,7 @@ interface IrOperator {
     object DESTRUCTURING_DECLARATION : IrOperatorImpl("DESTRUCTURING_DECLARATION")
     
     object GET_PROPERTY : IrOperatorImpl("GET_PROPERTY")
+    object GET_LOCAL_PROPERTY : IrOperatorImpl("GET_LOCAL_PROPERTY")
 
     object IF : IrOperatorImpl("IF")
     object WHEN : IrOperatorImpl("WHEN")
diff --git a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/util/RenderIrElement.kt b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/util/RenderIrElement.kt
index 2158b804b5a..95a74afaed1 100644
--- a/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/util/RenderIrElement.kt
+++ b/compiler/ir/ir.tree/src/org/jetbrains/kotlin/ir/util/RenderIrElement.kt
@@ -69,6 +69,12 @@ class RenderIrElementVisitor : IrElementVisitor<String, Nothing?> {
     override fun visitAnonymousInitializer(declaration: IrAnonymousInitializer, data: Nothing?): String =
             "ANONYMOUS_INITIALIZER ${declaration.descriptor.name}"
 
+    override fun visitLocalDelegatedProperty(declaration: IrLocalDelegatedProperty, data: Nothing?): String =
+            "LOCAL_DELEGATED_PROPERTY ${declaration.descriptor.render()}"
+
+    override fun visitLocalPropertyAccessor(declaration: IrLocalPropertyAccessor, data: Nothing?): String =
+            "LOCAL_PROPERTY_ACCESSOR ${declaration.descriptor.name}" // can't render, see nullability for modality
+
     override fun visitExpressionBody(body: IrExpressionBody, data: Nothing?): String =
             "EXPRESSION_BODY"
 
diff --git a/compiler/testData/ir/irText/declarations/localDelegatedProperties.kt b/compiler/testData/ir/irText/declarations/localDelegatedProperties.kt
index 33c3df9b896..451196033e5 100644
--- a/compiler/testData/ir/irText/declarations/localDelegatedProperties.kt
+++ b/compiler/testData/ir/irText/declarations/localDelegatedProperties.kt
@@ -1,4 +1,11 @@
 fun test1() {
     val x by lazy { 42 }
     println(x)
+}
+
+fun test2() {
+    var x by hashMapOf<String, Int>()
+    x = 0
+    x++
+    x += 1
 }
\ No newline at end of file
diff --git a/compiler/testData/ir/irText/declarations/localDelegatedProperties.txt b/compiler/testData/ir/irText/declarations/localDelegatedProperties.txt
index cc11b75af34..abbd60cb91e 100644
--- a/compiler/testData/ir/irText/declarations/localDelegatedProperties.txt
+++ b/compiler/testData/ir/irText/declarations/localDelegatedProperties.txt
@@ -1,7 +1,7 @@
 FILE /localDelegatedProperties.kt
   FUN public fun test1(): kotlin.Unit
     BLOCK_BODY
-      ? IrLocalDelegatedPropertyImpl x
+      LOCAL_DELEGATED_PROPERTY val x: kotlin.Int
         VAR val `x$delegate`: kotlin.Lazy<kotlin.Int>
           CALL .lazy type=kotlin.Lazy<kotlin.Int> operator=null
             initializer: BLOCK type=() -> kotlin.Int operator=LAMBDA
@@ -10,7 +10,7 @@ FILE /localDelegatedProperties.kt
                   RETURN type=kotlin.Nothing from=<anonymous>
                     CONST Int type=kotlin.Int value='42'
               CALLABLE_REFERENCE local final fun <anonymous>(): kotlin.Int type=() -> kotlin.Int
-        ? IrLocalPropertyAccessorImpl <get-x>
+        LOCAL_PROPERTY_ACCESSOR <get-x>
           BLOCK_BODY
             RETURN type=kotlin.Nothing from=<get-x>
               CALL .getValue type=kotlin.Int operator=null
@@ -18,4 +18,38 @@ FILE /localDelegatedProperties.kt
                 thisRef: CONST Null type=kotlin.Nothing? value='null'
                 property: CALLABLE_REFERENCE val x: kotlin.Int type=kotlin.reflect.KProperty0<kotlin.Int>
       CALL .println type=kotlin.Unit operator=null
-        message: GET_VAR x type=kotlin.Int operator=null
+        message: CALL .<get-x> type=kotlin.Int operator=GET_LOCAL_PROPERTY
+  FUN public fun test2(): kotlin.Unit
+    BLOCK_BODY
+      LOCAL_DELEGATED_PROPERTY var x: kotlin.Int
+        VAR val `x$delegate`: java.util.HashMap<kotlin.String, kotlin.Int>
+          CALL .hashMapOf type=java.util.HashMap<kotlin.String, kotlin.Int> operator=null
+        LOCAL_PROPERTY_ACCESSOR <get-x>
+          BLOCK_BODY
+            RETURN type=kotlin.Nothing from=<get-x>
+              CALL .getValue type=kotlin.Int operator=null
+                $receiver: GET_VAR x$delegate type=java.util.HashMap<kotlin.String, kotlin.Int> operator=null
+                thisRef: CONST Null type=kotlin.Nothing? value='null'
+                property: CALLABLE_REFERENCE var x: kotlin.Int type=kotlin.reflect.KMutableProperty0<kotlin.Int>
+        LOCAL_PROPERTY_ACCESSOR <set-x>
+          BLOCK_BODY
+            RETURN type=kotlin.Nothing from=<set-x>
+              TYPE_OP operator=IMPLICIT_CAST typeOperand=kotlin.Int
+                CALL .setValue type=kotlin.Unit operator=null
+                  $receiver: GET_VAR x$delegate type=java.util.HashMap<kotlin.String, kotlin.Int> operator=null
+                  thisRef: CONST Null type=kotlin.Nothing? value='null'
+                  property: CALLABLE_REFERENCE var x: kotlin.Int type=kotlin.reflect.KMutableProperty0<kotlin.Int>
+                  value: GET_VAR value type=kotlin.Int operator=null
+      CALL .<set-x> type=kotlin.Int operator=EQ
+        value: CONST Int type=kotlin.Int value='0'
+      BLOCK type=kotlin.Int operator=POSTFIX_INCR
+        VAR val tmp0: kotlin.Int
+          CALL .<get-x> type=kotlin.Int operator=POSTFIX_INCR
+        CALL .<set-x> type=kotlin.Int operator=POSTFIX_INCR
+          value: CALL .inc type=kotlin.Int operator=POSTFIX_INCR
+            $this: GET_VAR tmp0 type=kotlin.Int operator=null
+        GET_VAR tmp0 type=kotlin.Int operator=null
+      CALL .<set-x> type=kotlin.Int operator=PLUSEQ
+        value: CALL .plus type=kotlin.Int operator=PLUSEQ
+          $this: CALL .<get-x> type=kotlin.Int operator=PLUSEQ
+          other: CONST Int type=kotlin.Int value='1'