Yes, it's definitely possible to setup a local test server. However, you would probably need the following in order to setup a Server :
- Windows2003 Server or Windows2008 Server or any other Operating System
- Apache or IIS
- PHP
- MySQL ( In case you need database hosted )
You will need to download and install them on to your local machine and follow basic procedure. You may try a test and let us know...
Regards,
Shane Phillips