In a system (100) that includes at least one mobility server (40, 50), at least one edge mobility agent (60) and a plurality of mobile nodes (20, 30), a method for local routing between two mobile nodes that includes the steps of: receiving a first care-of address for a first mobile node; detecting an edge mobility agent having knowledge of the first care-of address; determining, based upon at least one condition, that the edge mobility agent can perform local routing of at least one datagram for the first mobile node; and instructing the edge mobility agent to perform local routing of at least one datagram between the first mobile node and a second mobile node that has a second care-of address that is known to the edge mobility agent.