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In this paper, a Radial Basis Function neural network based AVR is proposed. A control strate0 which generates local linear models from a global neural model on-line is used to derive controller feedback gains based on the Generalised Minimum Variance technique.Testing is carried out on a micromachine system wbich enables evaluation of practical implementation of the scheme. Constraints imposed by gathering training data, computational load, and memory requirements for the training algorithm are addressed.