Offer customers local delivery, which can be for a set price or free over a specific amount. 

Go to Settings > General Settings > click on the Shipping Carrier API tab

Scroll down and toggle on Offer Local Delivery.
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Set the delivery price and the amount for "Delivery included". Add Local delivery notes, which will appear on the checkout form, indicating the local area that qualifies for delivery. NOTE: There is no geo-verification on our side for this, so you will need to check the order and decide if you can deliver it. If you cannot, a shipping charge can be applied to the order by using Customize Order. Then, you can alert the customer of the additional shipping charge. 

On checkout, it will still show as Shipping, but the charge will show the price for Local delivery, or it will show "Included" if the order qualifies. 

In your Orders dashboard, you can filter in the Fulfilment dropdown for Local Delivery. You can also see in the Order status column, toward the bottom, the status Local delivery. (This is not listed under Processed or All Unprocessed because this would depend on whether you are capturing in real time or not). 

Be sure to do a test order before announcing Local Delivery. 

After the order has been delivered, set the status to Delivered.