The diversity of local cultural museums in Taiwan is one of the responses to global museum localization. This research focuses on the ‘Local Cultural Museum Project’ (2002-2011), a policy adopted by the Council for Cultural Affairs between 2002 and 2011. This research analyzes subsidies of more than 400 sites during the past decade, reconstructs policy history, identifies the contribution of the policy to local cultural museums, and discusses the insufficiencies of this policy. This paper argues that there was no overall supporting project for small-to-medium museums from the national government during the century of museum development in Taiwan. This paper also indicates that diversity is one of the national goals designated in the Constitution but the words seem pro forma these days. However, museums in a multicultural age can play the role of providing a platform for mutual understanding amongand bringing harmony to disparate groups, as well as acting as a resource for creativity. As such, “Cultural Diversity”definitely should be part of future cultural policies and become the main spirit in policy implementation.