When it comes to local people, who gets invitations? I've been told that it is proper for local people to receive invites, and I've also been told that it is up to me. I want to do what's right for my wedding, but I don't want to go overboard and spend way too much money on locally sent invitations.
Traditionally, all wedding guests get invitations, whether they live next door or across the country. If you're having a relatively small celebration and feel it's enough to let everyone know with a simple note or phone call, that's fine. But if you're having a relatively big (or even medium-sized) wedding -- and it sounds like you are if you're differentiating between local guests and out-of-towners -- it makes sense to "officially" invite everyone. That way they'll have all the info they need in writing. If you're concerned about invitation costs, choose a simple invite and go with a printing process other than engraving, or buy ready-made invites at a stationery store and fill in your information by hand.
Wedding Invitations + Wedding Stationery