Hi Michael,
You can create a local storage domain using the host's local storage drive. But, by design, local Data-Centers can have only a single host (i.e, you can't have other hosts using this storage).
For local storage deployment, first create a directory on the file system of the host's local drive (#mkdir <DIR_NAME>), change dir owner to vdsm:kvm (#chown vdsm:kvm <DIR_NAME>). Then, put the host in maintenance, create a new Data-Center of local storage type, add a cluster to it and add the host you put in maintenance to the cluster. Activate the host and create a local storage domain.
Elad