A high-speed and economical optical local access network system is proposed where bi-directional polarization multiplexing is applied to a bi-directional transmission. Experimental results using a prototype system confirm low optical loss and environmental stabilities. A high-speed and economical optical local access network system is proposed where bi-directional polarization multiplexing is applied to a bi-directional transmission. Experimental results using a prototype system confirm low optical loss and environmental stabilities.