A method is proposed to improve the accuracy of the numerical solution of elliptic problems with discontinuous boundary conditions using both global and local meshless collocation methods with multiquadrics as basis functions. It is based on the use of special functions which capture the singular behavior near discontinuities in boundary conditions. In the case of global collocation, the method consists in enlarging the functional space spanned by the RBF basis functions, while in the case of local collocation, the method consists in modifying appropriately the problem in order to eliminate the singularities from the formulation. Numerical results for benchmark problems such as a stationary heat equation in a box (harmonic) and Stokes flow in a lid-driven square cavity, show significant improvements in accuracy and in compliance with the continuity equation. © 2008 Elsevier Ltd. All rights reserved.