Nature of gamma-ray burst sources

Observational evidence suggests that gamma ray bursts have a local galactic origin involving neutron stars. In this light we make a critical review of physics of the thermonuclear runaway model placing emphasis on self-consistency. We further show that some of the proposed models can be observationally excluded in the light of existing data from the Einstein Observatory. The possibility of gamma bursts arising in low mass binaries is finally discussed in the light of evolutionary scenarios leading to low luminosity systems.