One of the many conceptual difficulties in the development of quantum gravity is the role of a background geometry for the structure of quantum field theory. To some extent the problem can be solved by the principle of local covariance. The principle of local covariance was originally imposed in order to restrict the renormalization freedom for quantum field theories on generic spacetimes. It turned out that it can also be used to implement the request of background independence. Locally covariant fields then arise as background independent entities.