A Local based System in collaboration with local area network (LAN) server is a program (and by implication usually the computer it runs in) that "serves" the resources (files, storage, application programs, printers, and other devices) for a number of attached workstations.
In an enterprise, a Local based server has an administrator (or someone who fills that role) and typically LAN services and the setting up and administration of the local area network are managed on behalf of users but not directly by the users.