The two neighbours lock horns at Goodison Park on Saturday with local pride as important as the points.
Royle has experienced the passion of the occasion as both a player and as a manager and he knows this Barclays Premier League encounter will be as fierce as any he has known.
He told premierleague.com: “You can’t beat derby games – and Everton against Liverpool is always a bit special.
“The build-up is more intense than it is for other matches. There is a real buzz avbout the city and it is all that fans want to talk about because it matters so much to get those bragging rights until the next local derby comes around.
“It might be a bit easier for the overseas players because they don’t have the pressure for tickets from friends and family or the attention from the local press.
“But on the other hand, the intensity of the occasion can come as a surprise to them once they walk out onto the pitch.
“But they are all experienced campaigners who are used to playing on the big stage so it won’t be too much of a shock.”
Royle feels both sides have made steady starts to the season but will target this fixture as a potential launchpad to kickstart the campaign.
However, he is finding it difficult to pick a winner from what looks likely to be a tight, tense affair.
He added: “It really is tough to predict, not least because the form guide goes out the window for this match.
“I am sure it will be close with maybe just one goal in it either way – although it would not surprise me if it finished 0-0.
“If I had to make a prediction I would go for a goalless draw but it will be an intriguing contest. I am really looking forward to it.
“I would say both sides have done OK so far this season, no more than that at this stage.
“Liverpool made some good forward signings and are more potent than last year. I really like the look of Luis Suarez and I have always been a big admirer of Stewart Downing.
“But Everton are very adept defensively as they showed last week at Manchester city where it took a deflection to break the deadlock.
“Sylvain Distin has been outstanding at the back and goalkeeper Tim Howard is impeccable so it is going to be close.
“But I am sure it will be entertaining. The fans will make sure of that. The atmosphere will be tremendous.”
Joe Royle was speaking on behalf of Barclays Ticket Office. Every 90 minutes throughout the season Barclays is offering fans the chance to win free tickets to Barclays Premier League matches by going to a Barclays ATM and requesting a receipt, or by visiting www.barclaysticketoffice.com
