  By shifting the reference system for the local-density approximation (LDA)
from the electron gas to other model systems one obtains a new class of density
functionals, which by design account for the correlations present in the chosen
reference system. This strategy is illustrated by constructing an explicit LDA
for the one-dimensional Hubbard model. While the traditional {\it ab initio}
LDA is based on a Fermi liquid (the electron gas), this one is based on a
Luttinger liquid. First applications to inhomogeneous Hubbard models, including
one containing a localized impurity, are reported.
