Atomic scale structure has a central importance for the understanding of functional properties of ferroelectrics. The X-ray and neutron diffraction studies used for the average symmetry determination of lead zirconate titanate [Pb(ZrxTi1-x)O-3, PZT] ceramics and powders are reviewed: The results obtained through two frequently used local probes, transmission electron microscopy (TEM) combined with electron diffraction (ED) and Raman scattering measurements, are summarized. On the basis of these studies, structural trends as a function of composition x and: temperature are outlined. There are two distinguished intrinsic structural features, (i) lead-ion shifts and (ii) local structural distortions related to different R cations and the spatial composition variation of x, which have a pronounced effect on the functional properties of PZT. Particular attention is paid to the morphotropic phase boundary (MPB) compositions for which a large number of different structural models have been proposed. Earlier symmetry considerations show that the monoclinic, phase cannot serve a, a continuous bridge between tetragonal and rhombohedral phases. This suggests that the two-phase coexistence has an important role for the piezoelectric properties. Near the MPB, the extrinsic contribution to piezoelectricity includes pressure (or electric-field)-induced changes in phase fractions and domain wall motion. It was recently shown that the domain contribution is crucial for the electromechanical properties of PZT in the vicinity of the MPB. The dependence of domain widths on crystal size and shape should also be properly accounted for when TEM/ED measurements complement X-ray and/or neutron diffraction experiments. The structure piezoelectric property relations are summarized.