Local variables are those that are declared inside a function. Only the statements that are within the block of the code can refer these variables.

   #include <iostream.h>
   int test()
      {
       int x;
       x = 200;
       return x;
      }
   int main( )
      {     
       int x;
       x = 100;
       cout  <<  "Value of X in  main is:" <<  x  << '\n';    
       cout  <<  "Value of X in  Test is:" <<  test()  << '\n';    
       return 0;
      }

In the above example the variable "x" is declared locally in both functions. So the values returned by the "x" depends on how it's assigned values in each individual functions. This is the local variables declaration in C++.