It has been noted that the power spectrum of intracortical local field potential (LFP) often scales as 1/f(-2). It is thought that LFP mostly represents the spiking-related neuronal activity such as synaptic currents and spikes in the vicinity of the recording electrode, but no 1/f(2) scaling is detected in the spike power. Although tissue filtering or modulation of spiking activity by UP and DOWN states could account for the observed LFP scaling, there is no consensus as to how it arises. We addressed this question by recording simultaneously LFP and single neurons ("single units") from multiple sites in somatosensory cortex of anesthetized rats. Single-unit data revealed the presence of periods of high activity, presumably corresponding to the "UP" states when the neuronal membrane potential is depolarized, and periods of no activity, the putative "DOWN" states when the membrane potential is close to resting. As expected, the LFP power scaled as 1/f(2) but no such scaling was found in the power spectrum of spiking activity. Our analysis showed that 1/f(2) scaling in the LFP power spectrum was largely generated by the steplike transitions between UP and DOWN states. The shape of the LFP signal during these transitions, but not the transition timing, was crucial to obtain the observed scaling. These transitions were probably induced by synchronous changes in the membrane potential across neurons. We conclude that a 1/f(2) scaling in the LFP power indicates the presence of steplike transitions in the LFP trace and says little about the statistical properties of the associated neuronal firing.