The paper is devoted to local derivations on the algebra S(M, τ) of τ measurable operators affiliated with a von Neumann algebra M and a faithful normal semi-finite trace τ. We prove that every local derivation on S(M, τ) which is continuous in the measure topology, is in fact a derivation. In the particular case of type I von Neumann algebras they all are inner derivations. It is proved that f...