diff --git a/lntypes/channel_party.go b/lntypes/channel_party.go
new file mode 100644
index 000000000..be800541b
--- /dev/null
+++ b/lntypes/channel_party.go
@@ -0,0 +1,52 @@
+package lntypes
+
+import "fmt"
+
+// ChannelParty is a type used to have an unambiguous description of which node
+// is being referred to. This eliminates the need to describe as "local" or
+// "remote" using bool.
+type ChannelParty uint8
+
+const (
+	// Local is a ChannelParty constructor that is used to refer to the
+	// node that is running.
+	Local ChannelParty = iota
+
+	// Remote is a ChannelParty constructor that is used to refer to the
+	// node on the other end of the peer connection.
+	Remote
+)
+
+// String provides a string representation of ChannelParty (useful for logging).
+func (p ChannelParty) String() string {
+	switch p {
+	case Local:
+		return "Local"
+	case Remote:
+		return "Remote"
+	default:
+		panic(fmt.Sprintf("invalid ChannelParty value: %d", p))
+	}
+}
+
+// CounterParty inverts the role of the ChannelParty.
+func (p ChannelParty) CounterParty() ChannelParty {
+	switch p {
+	case Local:
+		return Remote
+	case Remote:
+		return Local
+	default:
+		panic(fmt.Sprintf("invalid ChannelParty value: %v", p))
+	}
+}
+
+// IsLocal returns true if the ChannelParty is Local.
+func (p ChannelParty) IsLocal() bool {
+	return p == Local
+}
+
+// IsRemote returns true if the ChannelParty is Remote.
+func (p ChannelParty) IsRemote() bool {
+	return p == Remote
+}