The current EPI methodology for identifying immunization coverage is simple and easy to carry out under field conditions and gives a good idea about immunization coverage. However, it is not useful for local managers. It does not identify small health units with poor performance. Information on performance at the local level is vital to enhance overall immunization coverage. Estimation of coverage on a small area basis can be made by Lot Quality Assurance Sampling (LQAS). LQAS was used in nine sub-centres of district Saharanpur. The methodology was found to be feasible and identified seven sub-centres with poor current performance. Although LQAS may not be a good substitute for current EPI methodology to evaluate immunization coverage in a large administrative area, it is suggested that LQAS is a useful additional method for routine monitoring and evaluation of health programmes on a small area basis, especially as the overall coverage increases.