How do you setup local domain what we can do first?
For this purpose you need a server OS, for instance, windows
server 2000, windows server 2003, windows server 2008 and so on or
Linux based systems as well as Unix. For windows it's very simple
just add role for your server to be a domain controller and follow
instructions. For Linux based systems as well as Unix you can find
information in Google there is a lot of it.