We show that every three-dimensional subspace of qutrit-qudit complex or real systems has a distinguishable basis under one-way local projective measurements and classical communication (LPCC). This solves a long-standing open problem proposed in [J. Phys. A, 40, 7937, 2007]. We further construct a three-dimensional space whose locally distinguishable basis is unique and apply the uniqueness property to the task of state transformation. We also construct a three-dimensional locally distinguishable multipartite space assisted with entanglement. On the other hand, we show that four-dimensional indistinguishable bipartite subspace under one-way LPCC exists. Our work offers profound insights and introduces a theoretical tool for understanding the local distinguishability of subspace. As a consequence, every qutrit channel has optimal environment-assisting classical capacity, and the environment-assisted classical capacity of every rank-three channel is at least$\log _{2} 3$. We also show that every two-qutrit state can be converted into a generalized classical state near the quantum-classical boundary by an entanglement-breaking channel.