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1.
From the classic cult TV series, "The League of Gentlemen", meaning, are you from this backend of nowhere village full of freaks. If your local, you're an inbred freak from a small village.

Hey you with hunchback, are you local?
by I Amlocal April 09, 2007
 
2.
Never spoken, always typed. Used over chat software to see if a buddy is actively online (or their box is just chewing juice)
Are you local? (The League of Gentlemen)
by Pim Lico July 13, 2005