I am one that believes K:local should be 'local'.
yes, other skills, may also be considered 'local'. Ie knowing about own religion first and then other deities from same religion and then what about other religions entirely?
I use the following table to represent this. I use it for practically all Knowledge skills, including local. From our House Rules - NB: area where PC grew up could also be another area where PC takes ranks in K:local - making this a very useful skill

I need to write that in...mmm. How many ranks? Sorry, ranting, here is the cut from our House rules:
Knowledge: In general the following circumstance modifiers apply to all Knowledge skill checks according to how close one is to where they grew up for a majority of their life. These modifiers represent knowledge of people, places, things that originated from the given area, not necessarily where they may be encountered:
Vicinity (Examples Modifier)
Immediate locale - Home town/village, local city neighbourhood, surrounding vale, part of woods, etc. Eg: Town of Rutherford.
(+10)
Home area - Rural community and surrounding farms, city quarter, part of large or whole of small forest/marsh/hills, bay area, etc. Eg: Town of Rutherford and surrounding farms and southern Ralferst Forest (in which Rutherford lies).
(+5)
Home division - Duchy, barony, county, whole of large city, whole of large forest/hills/marsh, whole of and bordering areas for small forest/hills/marsh, coastline, etc. Eg: Duchy of Dalgani.
(+2)
Home region or land - Country, kingdom, land division (as described in Homelands document). Eg: Brymoria.
(+0)
Surrounding region or land - Country, kingdom, land division that borders upon homeland or a region where people have settled recently from homeland. Eg (using Brymoria as homeland): Borderlands, Chandalaya (east), Dalelands, Mornalduum Heights, Thaldaria (all bordering) & Crescent Isles, North Frontier, Brandon, Southern Baronies (where Brymorians have settled recently).
(-2)
Near region or land - Country, kingdom, land not bordering homeland but considered near enough to encounter through trade/war etc (usually other side of bordering regions). May also apply to kingdoms that border regions where people from your homeland have settled. Eg (using Brymoria as homeland): Danirheim, Bador, Ashville, Dlactland, Cavandare, Chandalaya (west), Relvoor (all near Brymoria) & Agea, Avalin, Matusuland, Carantha, South Frontier, Lizardspine Mountains (all lands/regions bordering those where Brymorians have recently settled).
(-5)
Distant or foreign land - One a character may have heard of, but has no relationship with one’s homeland.
(-10)
Appologies for layout. Table didn't come over
I could easily do this using egs from another CS if that helps. This is from our home brew and uses places familiar to our players.
Some may find it complicated, but when you have a map and know the regions it works wonderfully (oh and when set out in a easy to undertand table

)