A transmission system in arts education is the process of transferring an artistic skill from one generation to another, which also involves local wisdom on character education. This research aims at analysing the local wisdom on character education within the transmission system of pottery culture observed at three different pottery centres in Malang. The study was conducted extensively and thoroughly using a qualitative approach with a phenomenology research design. The researcher conducted intensive interviews, FGDs, observation, and literary study as vital instruments to collect the field data. The data were then reduced, presented, and verified using both data and technique triangulations, and finally analysed using an interactive and interpretative model. The findings of the study are: first, the local wisdom on character education values derived from the transmission system of traditional pottery detected an informal interaction that naturally involves the value of responsibilities, discipline, diligence, respect to the elder, and the awareness on the culture. Second, the local wisdom on character education values within the creative pottery transmission system have a more organized and integrated program of non-formal interaction, which results in the values of independence, creativity, logical thinking, and discipline. Keywords: character education values, transmission system, Malang pottery