Just a Local band
Well everyone is local to somewhere, I guess being in a band I hate that label placed on bands. The term "local band" just makes it sound like they're some house bar band that plays covers (poorly) for beer and pretzels.
I just used the term "local" to differentiate that I saw Luna Mortis before they were a signed band, before they were playing far outside of their region/area (and before their name change).
I meant no offense by any description I used for them. I personally don't place such a narrow view on the term "local band" since I love a lot of great unsigned local bands, but perhaps I should have just said "unsigned band" to be more clear.
If I mean cover band I say cover band, and IMO there's nothing wrong with being in a cover band either, especially if you do it well ... and if it helps pay the bills more power to you for making money at playing music. Technically there's a cover band/tribute band playing ProgPower's mid-week mayhem this year. Nothing wrong with that. I hear they are talented as hell.
Also, Doro's drummer and bass player (who also do studio/live work for other bands) play together in a "cover band" (America Tabloid) from PA when they are not touring.
I don't associate any stigma with being in these type of bands because I've heard plenty of bands that fall into the categories of "local" or "cover" that have been great. I've also heard a lot of signed bands out there that sound like they should be playing for beer and pretzels.
If people eliminate their choices of music based on someone description a band as "local," than they are doing themselves a great disservice. Obviously, Luna Mortis has proved themselves to be more than just a "local" favorite if they've been signed by one of the bigger metal labels in the US.