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Large national surveys such as the Survey of Aspects of Literacy and the Adult Literacy and Life Skills Survey are able to provide literacy estimates for national and state levels. However, due to sample size constraints, it is not possible to produce estimates for smaller geographical areas using the sample data alone. The purpose of this paper is to derive experimental estimates of adult literacy for Local Government Areas from the Adult Literacy and Life Skills Survey 2006 (ALLS 2006). The paper uses a small area estimation technique - specifically a multilevel random intercept model - to derive estimates for small geographical areas.