The article focuses on the problem of factionalism within the Japanese Liberal- Democratic Party. LDP has been called “an alliance of factions” since its establishment in 1955. The faction leaders ceaselessly competed for power by recruiting new members and helping them in their political careers. This system required large amounts of money delivered by big companies, hence it generated structural corruption, and was widely criticized by the Japanese public opinion. The main objective of the article is to explain how the discourse on the dissolution of LDP factions was used in the past in the interests of particular politicians, and what changed after the electoral system reform in 1994. The author argues that although there was a strong tendency, especially among the party leaders, to strive for the eradication of factionalism, this goal could not be achieved under the system of middle-sized constituencies. The new electoral system established in 1994, enabled more profound reforms, carried out by Koizumi Jun’ichirō, but it is still uncertain whether the dissolution of factions is really in the interest of LDP.