This paper is a continuation of [VAK 01]. The notion of local connection algebra, based on the primitive notions of connection and boundedness, is introduced. It is slightly different but equivalent to Roeper's notion of region-based topology [ROE 97]. The similarity between the local proximity spaces of Leader [LEA 67] and local connection algebras is emphasized. Machinery, analogous to that introduced by Efremovi?c [EFR 51],[EFR 52], Smirnov [SMI 52] and Leader [LEA 67] for proximity and local proximity spaces, is developed. (...) This permits us to give new proximity-type models of local connection algebras, to obtain a representation theorem for such algebras and to give a new shorter proof of the main theorem of Roeper's paper [ROE 97]. Finally, the notion of MVD-algebra is introduced. It is similar to Mormann's notion of enriched Boolean algebra [MOR 98], based on a single mereological relation of interior parthood. It is shown that MVD-algebras are equivalent to local connection algebras. This means that the connection relation and boundedness can be incorporated into one, mereological in nature relation. In this way a formalization of the Whiteheadian theory of space based on a single mereological relation is obtained. (shrink)