Full Definition of LOCAL GOVERNMENT. : the government of a specific local area constituting a subdivision of a major political unit (as a nation or state); also: the body of persons constituting such a government.See local government defined for English-language learners. ADVERTISEMENT. the government of a specific local area constituting a subdivision of a major political unit (as a nation or state); also: the body of persons constituting such a government. See local government defined for English-language learners.