In this step, we associate every lexical entry with a unique identifier, and taking the global finite-state automaton which is the output of step two as input, create a local finite-state automaton for each lexical entry. This step is similar in execution to the second component of step two, since we unify the lexical feature structure with the lexical rule specifications along all paths in the automaton, prune arcs which cannot apply to that lexical entry and its derivations, and create a table in which states are associated with feature structures. We alter the automaton representation to incorporate the lexical identifier, resulting in output of the form lex_arc(Lex_ID,StateIn_Label,StateOut_Label,Rule_Label,Cycle_Flag).