A method is provided for forming a borderless contact to a local interconnect (LI) line on a substrate. Generally, the method includes steps of (i) depositing a nitride layer over a number of LI lines on the substrate, to substantially cover the LI lines; (ii) etching the nitride layer to form spacers adjacent to sidewalls of at least one of the number of LI lines and to expose at least a portion of a top surface of the LI line; (iii) depositing an inter-layer dielectric, such as an oxide, over the number of LI lines on the substrate and the spacers formed adjacent thereto; and (iv) performing a contact etch to etch contact openings through the inter-layer dielectric to expose the portion of the top surface of the underlying LI line. Other embodiments are also disclosed.