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The notions of time in the theories of Newton and Einstein are reviewed so that the difficulty which impedes the unification of quantum mechanics (QM) and general relativity (GR) is clarified. It is seen that GR by itself contains an intrinsic difficulty relating to the definition of local clocks, as well as that GR still requires a kind of absolute that can serve as an objective reference standard. We present a new understanding of time, which gives a consistent definition of a local time associated with each local system in a quantum mechanical way, so that it serves the requirements of both GR as well as QM. As a consequence, QM and GR are reconciled while preserving the current mathematical formulations of both theories.