diff --git a/apps/emqx_bridge/test/emqx_bridge_v2_api_SUITE.erl b/apps/emqx_bridge/test/emqx_bridge_v2_api_SUITE.erl
index d24d4feac..fabaadb92 100644
--- a/apps/emqx_bridge/test/emqx_bridge_v2_api_SUITE.erl
+++ b/apps/emqx_bridge/test/emqx_bridge_v2_api_SUITE.erl
@@ -451,11 +451,8 @@ source_config_base() ->
         <<"connector">> => ?SOURCE_CONNECTOR_NAME,
         <<"parameters">> =>
             #{
-                <<"remote">> =>
-                    #{
-                        <<"topic">> => <<"remote/topic">>,
-                        <<"qos">> => 2
-                    }
+                <<"topic">> => <<"remote/topic">>,
+                <<"qos">> => 2
             },
         <<"resource_opts">> => #{
             <<"batch_size">> => 1,
diff --git a/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_connector.erl b/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_connector.erl
index 18af6ee11..9aae73bd2 100644
--- a/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_connector.erl
+++ b/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_connector.erl
@@ -127,8 +127,9 @@ on_add_channel(
         true ->
             ok
     end,
-    ChannelState0 = maps:get(parameters, ChannelConfig),
-    ChannelState = emqx_bridge_mqtt_egress:config(ChannelState0),
+    RemoteParams0 = maps:get(parameters, ChannelConfig),
+    {LocalParams, RemoteParams} = take(local, RemoteParams0, #{}),
+    ChannelState = emqx_bridge_mqtt_egress:config(#{remote => RemoteParams, local => LocalParams}),
     NewInstalledChannels = maps:put(ChannelId, ChannelState, InstalledChannels),
     NewState = OldState#{installed_channels => NewInstalledChannels},
     {ok, NewState};
@@ -144,15 +145,18 @@ on_add_channel(
     #{hookpoints := HookPoints} = ChannelConfig
 ) ->
     %% Add ingress channel
-    ChannelState0 = maps:get(parameters, ChannelConfig),
-    ChannelState1 = ChannelState0#{
+    RemoteParams0 = maps:get(parameters, ChannelConfig),
+    {LocalParams, RemoteParams} = take(local, RemoteParams0, #{}),
+    ChannelState0 = #{
         hookpoints => HookPoints,
         server => Server,
-        config_root => sources
+        config_root => sources,
+        local => LocalParams,
+        remote => RemoteParams
     },
-    ChannelState2 = mk_ingress_config(ChannelId, ChannelState1, TopicToHandlerIndex),
-    ok = emqx_bridge_mqtt_ingress:subscribe_channel(PoolName, ChannelState2),
-    NewInstalledChannels = maps:put(ChannelId, ChannelState2, InstalledChannels),
+    ChannelState1 = mk_ingress_config(ChannelId, ChannelState0, TopicToHandlerIndex),
+    ok = emqx_bridge_mqtt_ingress:subscribe_channel(PoolName, ChannelState1),
+    NewInstalledChannels = maps:put(ChannelId, ChannelState1, InstalledChannels),
     NewState = OldState#{installed_channels => NewInstalledChannels},
     {ok, NewState}.
 
@@ -500,3 +504,11 @@ connect(Pid, Name) ->
 
 handle_disconnect(_Reason) ->
     ok.
+
+take(Key, Map0, Default) ->
+    case maps:take(Key, Map0) of
+        {Value, Map} ->
+            {Value, Map};
+        error ->
+            {Default, Map0}
+    end.
diff --git a/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_ingress.erl b/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_ingress.erl
index d59318a84..369238ecf 100644
--- a/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_ingress.erl
+++ b/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_ingress.erl
@@ -178,11 +178,13 @@ config(#{ingress_list := IngressList} = Conf, Name, TopicToHandlerIndex) ->
     ],
     Conf#{ingress_list => NewIngressList}.
 
-fix_remote_config(#{remote := RC, local := LC}, BridgeName, TopicToHandlerIndex, Conf) ->
-    FixedConf = Conf#{
-        remote => parse_remote(RC, BridgeName),
-        local => emqx_bridge_mqtt_msg:parse(LC)
+fix_remote_config(#{remote := RC}, BridgeName, TopicToHandlerIndex, Conf) ->
+    FixedConf0 = Conf#{
+        remote => parse_remote(RC, BridgeName)
     },
+    FixedConf = emqx_utils_maps:update_if_present(
+        local, fun emqx_bridge_mqtt_msg:parse/1, FixedConf0
+    ),
     insert_to_topic_to_handler_index(FixedConf, TopicToHandlerIndex, BridgeName),
     FixedConf.
 
diff --git a/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_pubsub_action_info.erl b/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_pubsub_action_info.erl
index e4a4fcd19..cf7a5bc04 100644
--- a/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_pubsub_action_info.erl
+++ b/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_pubsub_action_info.erl
@@ -95,8 +95,11 @@ bridge_v1_config_to_action_config_helper(
     LocalTopicMap = maps:get(<<"local">>, EgressMap0, #{}),
     LocalTopic = maps:get(<<"topic">>, LocalTopicMap, undefined),
     EgressMap1 = maps:without([<<"local">>, <<"pool_size">>], EgressMap0),
+    LocalParams = maps:get(<<"local">>, EgressMap0, #{}),
+    EgressMap2 = emqx_utils_maps:unindent(<<"remote">>, EgressMap1),
+    EgressMap = maps:put(<<"local">>, LocalParams, EgressMap2),
     %% Add parameters field (Egress map) to the action config
-    ConfigMap2 = maps:put(<<"parameters">>, EgressMap1, ConfigMap1),
+    ConfigMap2 = maps:put(<<"parameters">>, EgressMap, ConfigMap1),
     ConfigMap3 =
         case LocalTopic of
             undefined ->
@@ -107,7 +110,7 @@ bridge_v1_config_to_action_config_helper(
     {action, mqtt, ConfigMap3};
 bridge_v1_config_to_action_config_helper(
     #{
-        <<"ingress">> := IngressMap
+        <<"ingress">> := IngressMap0
     } = Config,
     ConnectorName
 ) ->
@@ -117,9 +120,12 @@ bridge_v1_config_to_action_config_helper(
     ConfigMap1 = general_action_conf_map_from_bridge_v1_config(
         Config, ConnectorName, SchemaFields, ResourceOptsSchemaFields
     ),
-    IngressMap1 = maps:remove(<<"pool_size">>, IngressMap),
+    IngressMap1 = maps:without([<<"pool_size">>, <<"local">>], IngressMap0),
+    LocalParams = maps:get(<<"local">>, IngressMap0, #{}),
+    IngressMap2 = emqx_utils_maps:unindent(<<"remote">>, IngressMap1),
+    IngressMap = maps:put(<<"local">>, LocalParams, IngressMap2),
     %% Add parameters field (Egress map) to the action config
-    ConfigMap2 = maps:put(<<"parameters">>, IngressMap1, ConfigMap1),
+    ConfigMap2 = maps:put(<<"parameters">>, IngressMap, ConfigMap1),
     {source, mqtt, ConfigMap2};
 bridge_v1_config_to_action_config_helper(
     _Config,
@@ -182,7 +188,7 @@ check_and_simplify_bridge_v1_config(SimplifiedConfig) ->
 connector_action_config_to_bridge_v1_config(
     ConnectorConfig, ActionConfig
 ) ->
-    Params = maps:get(<<"parameters">>, ActionConfig, #{}),
+    Params0 = maps:get(<<"parameters">>, ActionConfig, #{}),
     ResourceOptsConnector = maps:get(<<"resource_opts">>, ConnectorConfig, #{}),
     ResourceOptsAction = maps:get(<<"resource_opts">>, ActionConfig, #{}),
     ResourceOpts0 = maps:merge(ResourceOptsConnector, ResourceOptsAction),
@@ -194,37 +200,54 @@ connector_action_config_to_bridge_v1_config(
     ResourceOpts = maps:with(V1ResourceOptsFields, ResourceOpts0),
     %% Check the direction of the action
     Direction =
-        case maps:get(<<"remote">>, Params) of
-            #{<<"retain">> := _} ->
-                %% Only source has retain
+        case is_map_key(<<"retain">>, Params0) of
+            %% Only source has retain
+            true ->
                 <<"publisher">>;
-            _ ->
+            false ->
                 <<"subscriber">>
         end,
-    Parms2 = maps:remove(<<"direction">>, Params),
+    Params1 = maps:remove(<<"direction">>, Params0),
+    Params = maps:remove(<<"local">>, Params1),
+    %% hidden; for backwards compatibility
+    LocalParams = maps:get(<<"local">>, Params1, #{}),
     DefaultPoolSize = emqx_connector_schema_lib:pool_size(default),
     PoolSize = maps:get(<<"pool_size">>, ConnectorConfig, DefaultPoolSize),
-    Parms3 = maps:put(<<"pool_size">>, PoolSize, Parms2),
     ConnectorConfig2 = maps:remove(<<"pool_size">>, ConnectorConfig),
     LocalTopic = maps:get(<<"local_topic">>, ActionConfig, undefined),
     BridgeV1Conf0 =
         case {Direction, LocalTopic} of
             {<<"publisher">>, undefined} ->
-                #{<<"egress">> => Parms3};
+                #{
+                    <<"egress">> =>
+                        #{
+                            <<"pool_size">> => PoolSize,
+                            <<"remote">> => Params,
+                            <<"local">> => LocalParams
+                        }
+                };
             {<<"publisher">>, LocalT} ->
                 #{
                     <<"egress">> =>
-                        maps:merge(
-                            Parms3, #{
-                                <<"local">> =>
-                                    #{
-                                        <<"topic">> => LocalT
-                                    }
-                            }
-                        )
+                        #{
+                            <<"pool_size">> => PoolSize,
+                            <<"remote">> => Params,
+                            <<"local">> =>
+                                maps:merge(
+                                    LocalParams,
+                                    #{<<"topic">> => LocalT}
+                                )
+                        }
                 };
             {<<"subscriber">>, _} ->
-                #{<<"ingress">> => Parms3}
+                #{
+                    <<"ingress">> =>
+                        #{
+                            <<"pool_size">> => PoolSize,
+                            <<"remote">> => Params,
+                            <<"local">> => LocalParams
+                        }
+                }
         end,
     BridgeV1Conf1 = maps:merge(BridgeV1Conf0, ConnectorConfig2),
     BridgeV1Conf2 = BridgeV1Conf1#{
diff --git a/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_pubsub_schema.erl b/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_pubsub_schema.erl
index b4c2b63ba..4cf092a60 100644
--- a/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_pubsub_schema.erl
+++ b/apps/emqx_bridge_mqtt/src/emqx_bridge_mqtt_pubsub_schema.erl
@@ -56,10 +56,18 @@ fields("mqtt_publisher_action") ->
         )
     );
 fields(action_parameters) ->
-    Fields0 = emqx_bridge_mqtt_connector_schema:fields("egress"),
-    Fields1 = proplists:delete(pool_size, Fields0),
-    Fields2 = proplists:delete(local, Fields1),
-    Fields2;
+    [
+        %% for backwards compatibility
+        {local,
+            mk(
+                ref(emqx_bridge_mqtt_connector_schema, "egress_local"),
+                #{
+                    default => #{},
+                    importance => ?IMPORTANCE_HIDDEN
+                }
+            )}
+        | emqx_bridge_mqtt_connector_schema:fields("egress_remote")
+    ];
 fields(source) ->
     {mqtt,
         mk(
@@ -71,8 +79,8 @@ fields(source) ->
         )};
 fields("mqtt_subscriber_source") ->
     emqx_bridge_v2_schema:make_consumer_action_schema(
-        hoconsc:mk(
-            hoconsc:ref(?MODULE, ingress_parameters),
+        mk(
+            ref(?MODULE, ingress_parameters),
             #{
                 required => true,
                 desc => ?DESC("source_parameters")
@@ -80,10 +88,18 @@ fields("mqtt_subscriber_source") ->
         )
     );
 fields(ingress_parameters) ->
-    Fields0 = emqx_bridge_mqtt_connector_schema:fields("ingress"),
-    Fields1 = proplists:delete(pool_size, Fields0),
-    %% FIXME: should we make `local` hidden?
-    Fields1;
+    [
+        %% for backwards compatibility
+        {local,
+            mk(
+                ref(emqx_bridge_mqtt_connector_schema, "ingress_local"),
+                #{
+                    default => #{},
+                    importance => ?IMPORTANCE_HIDDEN
+                }
+            )}
+        | emqx_bridge_mqtt_connector_schema:fields("ingress_remote")
+    ];
 fields(action_resource_opts) ->
     UnsupportedOpts = [enable_batch, batch_size, batch_time],
     lists:filter(
diff --git a/apps/emqx_bridge_mqtt/test/emqx_bridge_mqtt_v2_subscriber_SUITE.erl b/apps/emqx_bridge_mqtt/test/emqx_bridge_mqtt_v2_subscriber_SUITE.erl
index 5569a826b..a0b3edfa7 100644
--- a/apps/emqx_bridge_mqtt/test/emqx_bridge_mqtt_v2_subscriber_SUITE.erl
+++ b/apps/emqx_bridge_mqtt/test/emqx_bridge_mqtt_v2_subscriber_SUITE.erl
@@ -108,11 +108,8 @@ source_config(Overrides0) ->
             <<"connector">> => <<"please override">>,
             <<"parameters">> =>
                 #{
-                    <<"remote">> =>
-                        #{
-                            <<"topic">> => <<"remote/topic">>,
-                            <<"qos">> => 2
-                        }
+                    <<"topic">> => <<"remote/topic">>,
+                    <<"qos">> => 2
                 },
             <<"resource_opts">> => #{
                 <<"batch_size">> => 1,
@@ -197,7 +194,7 @@ t_receive_via_rule(Config) ->
             Hookpoint = hookpoint(Config),
             RepublishTopic = <<"rep/t">>,
             RemoteTopic = emqx_utils_maps:deep_get(
-                [<<"parameters">>, <<"remote">>, <<"topic">>],
+                [<<"parameters">>, <<"topic">>],
                 SourceConfig
             ),
             RuleOpts = #{