Let X be a compact
connected metric space and 2X(C(X)) denote the hyperspace of closed subsets
(subcontinua) of X. In this paper the hyperspaces are investigated with respect
to point-wise connectivity properties. Let M ∈ C(X). Then 2X is locally
connected (connected im kleinen) at M if and only if for each open set U
containing M there is a connected open set V such that M ⊂ V ⊂ U (there is a
component of U which contains M in its interior). This theorem is used to
prove the following main result. Let A ∈ 2X. Then 2X is locally connected
(connected im kleinen) at A if and only if 2X is locally connected (connected im
kleinen) at each component of A. Several related results about C(X) are also
obtained.