A method and apparatus for indicating support of a local gateway (L-GW) in a wireless communication system is provided. A master evolved NodeB (MeNB) in dual connectivity receives an indication of L-GW support from a secondary eNB (SeNB) in dual connectivity, which is co-located with the L-GW, and transmit the indication of L-GW support of the SeNB to a mobility management entity (MME). The indication of L-GW support may include a local Internet protocol access (LIPA) L-GW transport layer address or a selected IP traffic offload (SIPTO) L-GW transport layer address.