On your website or on your business cards does it say words to the effect that “we are a local business”?
Do you think that simply saying you are a local business is enough?
If you want to build your business based on its locality you have to do something within the locale to strengthen your local claims. So what could you get involved in?

There are several things that come to mind from sponsoring local schools bazaars, to sponsoring the local soccer team to getting local news streamed onto your website.

The more your name is seen around the area the more recognition you will get for your business and when they go to your site visitors will already feel that they know you and your business.
So if being local is important to you then make sure that locally you get recognised.