Terms like “big data”, “data lake” and “predictive analytics” are not new1 but they are being used more regularly in the municipal sector. Many believe these concepts can drive insight, efficiencies and improvements to the way municipalities deliver services by taking huge volumes of data, analyzing them and then deriving new insights. In this way, we equip machines to do the powerful thinking the human brain could not manage at this scale. This paper will explore the emergence of big data, the theory behind it and some of its potential benefits for local governments. It will also consider some of the inherent risks in using big data and provide some recommended approaches to mitigating or avoiding them.