diff --git a/src/main/java/org/jboss/netty/channel/local/DefaultLocalServerChannelFactory.java b/src/main/java/org/jboss/netty/channel/local/DefaultLocalServerChannelFactory.java
index 8a5107b865..fc0da0fb3a 100644
--- a/src/main/java/org/jboss/netty/channel/local/DefaultLocalServerChannelFactory.java
+++ b/src/main/java/org/jboss/netty/channel/local/DefaultLocalServerChannelFactory.java
@@ -17,6 +17,7 @@ package org.jboss.netty.channel.local;
 
 import org.jboss.netty.channel.ChannelPipeline;
 import org.jboss.netty.channel.ChannelSink;
+import org.jboss.netty.channel.group.DefaultChannelGroup;
 
 /**
  * The default {@link LocalServerChannelFactory} implementation.
@@ -24,6 +25,7 @@ import org.jboss.netty.channel.ChannelSink;
  */
 public class DefaultLocalServerChannelFactory implements LocalServerChannelFactory {
 
+    private final DefaultChannelGroup group = new DefaultChannelGroup();
     private final ChannelSink sink = new LocalServerChannelSink();
 
     /**
@@ -34,14 +36,17 @@ public class DefaultLocalServerChannelFactory implements LocalServerChannelFacto
     }
 
     public LocalServerChannel newChannel(ChannelPipeline pipeline) {
-        return new DefaultLocalServerChannel(this, pipeline, sink);
+        LocalServerChannel channel = new DefaultLocalServerChannel(this, pipeline, sink);
+        group.add(channel);
+        return channel;
     }
 
+
     /**
-     * Does nothing because this implementation does not require any external
-     * resources.
+     * Release all the previous created channels. This takes care of calling {@link LocalChannelRegistry#unregister(LocalAddress)}
+     * for each if them.
      */
     public void releaseExternalResources() {
-        // Unused
+        group.close().awaitUninterruptibly();
     }
 }
diff --git a/src/test/java/org/jboss/netty/channel/local/LocalAddressTest.java b/src/test/java/org/jboss/netty/channel/local/LocalAddressTest.java
index 4734a8877d..5f0a35529d 100644
--- a/src/test/java/org/jboss/netty/channel/local/LocalAddressTest.java
+++ b/src/test/java/org/jboss/netty/channel/local/LocalAddressTest.java
@@ -20,7 +20,6 @@ import org.junit.Test;
 
 import org.jboss.netty.bootstrap.ClientBootstrap;
 import org.jboss.netty.bootstrap.ServerBootstrap;
-import org.jboss.netty.channel.Channel;
 import org.jboss.netty.channel.Channels;
 import org.jboss.netty.channel.ChannelEvent;
 import org.jboss.netty.channel.ChannelFuture;
@@ -67,7 +66,7 @@ public class LocalAddressTest {
         LocalAddress addr = new LocalAddress(LOCAL_ADDR_ID);
 
         // Start server
-        Channel channel = sb.bind(addr);
+        sb.bind(addr);
         
         // Connect to the server
         ChannelFuture connectFuture = cb.connect(addr);
@@ -81,10 +80,7 @@ public class LocalAddressTest {
 
         // Wait until the connection is closed, or the connection attempt fails
         connectFuture.getChannel().getCloseFuture().awaitUninterruptibly();
-        
-        // close the server channel
-        channel.close().awaitUninterruptibly();
-        
+                
         sb.releaseExternalResources();
         cb.releaseExternalResources();
 
@@ -123,7 +119,7 @@ public class LocalAddressTest {
         LocalAddress addr = new LocalAddress(LOCAL_ADDR_ID);
 
         // Start server
-        Channel channel = sb.bind(addr);
+        sb.bind(addr);
 
         // Connect to the server
         ChannelFuture connectFuture = cb.connect(addr);
@@ -138,9 +134,6 @@ public class LocalAddressTest {
         // Wait until the connection is closed, or the connection attempt fails
         connectFuture.getChannel().getCloseFuture().awaitUninterruptibly();
 
-        // close the server channel
-        channel.close().awaitUninterruptibly();
-        
         sb.releaseExternalResources();
         cb.releaseExternalResources();