  The intriguing observations of Swift/BAT X-ray flash XRF 060218 and the
BATSE-BeppoSAX gamma-ray burst GRB 980425, both with much lower luminosity and
redshift compared to other observed bursts, naturally lead to the question of
how these low-luminosity (LL) bursts are related to high-luminosity (HL)
bursts. Incorporating the constraints from both the flux-limited samples
observed with CGRO/BATSE and Swift/BAT and the redshift-known GRB sample, we
investigate the luminosity function for both LL- and HL-GRBs through
simulations. Our multiple criteria, including the log N - log P distributions
from the flux-limited GRB sample, the redshift and luminosity distributions of
the redshift-known sample, and the detection ratio of HL- and LL- GRBs with
Swift/BAT, provide a set of stringent constraints to the luminosity function.
Assuming that the GRB rate follows the star formation rate, our simulations
show that a simple power law or a broken power law model of luminosity function
fail to reproduce the observations, and a new component is required. This
component can be modeled with a broken power, which is characterized by a sharp
increase of the burst number at around L < 10^47 erg s^-1}. The lack of
detection of moderate-luminosity GRBs at redshift ~0.3 indicates that this
feature is not due to observational biases. The inferred local rate, rho_0, of
LL-GRBs from our model is ~ 200 Gpc^-3 yr^-1 at ~ 10^47 erg s^-1, much larger
than that of HL-GRBs. These results imply that LL-GRBs could be a separate GRB
population from HL-GRBs. The recent discovery of a local X-ray transient
080109/SN 2008D would strengthen our conclusion, if the observed non-thermal
emission has a similar origin as the prompt emission of most GRBs and XRFs.
