  Consider a scalar reflected diffusion $(X_t:t\geq 0)$, where the unknown
drift function $b$ is modelled nonparametrically. We show that in the low
frequency sampling case, when the sample consists of
$(X_0,X_\Delta,...,X_{n\Delta})$ for some fixed sampling distance $\Delta>0$,
the model satisfies the local asymptotic normality (LAN) property, assuming
that $b$ satisfies some mild regularity assumptions. This is established by
using the connections of diffusion processes to elliptic and parabolic PDEs.
The key tools will be regularity estimates from the theory of parabolic PDEs as
well as a detailed analysis of the spectral properties of the elliptic
differential operator related to $(X_t:t\geq 0)$.
