A local search engine is very similar to a normal search engine except it returns results that contain local businesses, local services, local sites and points of interest etc. Often these local search results are displayed alongside a map and carry useful information such as address, contact phone number and photos of the business/location.
All main search engines (e.g. Google, Yahoo!, Bing) offer a local search service as well as their normal, main search. It’s increasingly common for local search results to appear within the main search results as the search engines try to make their results more accurate and more useful for search users.