This paper exposes the strengths and weaknesses of the recently proposed velocity-based local model (LM) network. The global dynamics of the velocity-based blended representation are directly related to the dynamics of the underlying local models, an important property in the design of local controller networks. Furthermore, the sub-models are continuous-time and linear providing continuity with established linear theory and methods. This is not true for the conventional LM framework, where the global dynamics are only weakly related to the affine sub-models. In this paper, a velocity-based multiple model network is identified for a highly nonlinear dynamical system. The results show excellent dynamical modelling performances, highlighting the value of the velocity-based approach for the design and analysis of LM based control. Three important practical issues are also addressed. These relate to the blending of the velocity-based local models, the use of normalised Gaussian basis functions and the requirement of an input derivative.