A composition comprising lidocaine-containing liposomes wherein the weight concentration of lidocaine in said composition is greater than 10%. The composition is prepared by mixing water with an oil phase comprising lidocaine, a C14-C20 alcohol, an alkyl ester of a fatty acid, propylene glycol, and a polyalkyl stearate. The non-aqueous phase may also include a phospholipid such as phosphatidyl choline.