What is Local MCP server?

A local MCP server is one that runs on the same machine as the host application rather than at a remote URL. The host typically starts it as a child process and talks to it over the stdio transport, which is why local-server config is a command plus arguments, like an npx or uvx invocation, with secrets passed through environment variables. Running locally is the right model when the server needs direct access to things that only exist on your machine: the files in your working directory, a local Git repository, a database reachable on your LAN, or developer tools installed on your system. Because the server inherits your user's permissions, it is powerful and should be scoped carefully. The trade-offs are the mirror image of remote servers: a local server is per-machine and per-user, so each teammate installs and configures it separately, it is not always-on, and it cannot easily back a shared, centralized integration. Many capabilities ship in both forms, and the choice comes down to whether the data lives on your machine or in the cloud.