Refers to a newspaper published in a specific locality, often contrasted with national papers. Common in news and travel contexts.
I always read the local newspaper when I travel.
According to the local newspaper, it seems it will snow tomorrow.
地方紙 is a regional newspaper, often covering a broader area than 現地紙, which emphasizes the immediate locality.
Compound of 現地 (local, on-site) and 紙 (newspaper).