The users on one's local network (as opposed, say, to people one reaches via public Internet or UUCP connections). The marked thing about this usage is how little it has to do with real-space distance. "I have to do some tweaking on this mail utility before releasing it to the locals."
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Nearby terms: local loopback addresses « Local Mail Transfer Protocol « Local Multipoint Distribution System « locals » Local Shared Resources » LocalTalk » local variable