Cortical inhibition by γ-aminobutyric acid (GABA) has been widely suggested to be required to trigger ocular dominance (OD) plasticity in the visual cortex. However, there is also evidence that only the circuits mediated by specific GABAA receptors can induce OD plasticity, which implies the importance of localized GABA circuits in this process. In this study, to investigate the role of local inhibition in visual plasticity, we simulated the synaptic dynamics regulated by lateral and backward inhibition. The lateral inhibition facilitated competitive interactions between different groups of excitatory correlated inputs, which were required to elicit experience-dependent synaptic modifications. Conversely, the backward inhibition suppressed such competitive interactions, which prevented synapses from reflecting past sensory experience. Our results suggest that the interactions between lateral and backward inhibition may regulate the timing and level of cortical plasticity by modulating the activity-dependent competitive function.