In order to create a local ISO repository i.e one that is not residing on a network share but truly local you need the following.

1. Ssh access to the Xen server or console access through XenCenter
2. A Ftp program that can do SCP transfers

Right lets get started. First check if the following directory exists.

/var/opt/xen/iso_import

If the above directory does not exists create it. Simply use mkdir like shown below.

mkdir -p /var/opt/xen/iso_import

Now transfer your ISO file to /var/opt/xen/iso_import by the means of scp.

Next we need to make the repository visible to XenCenter interface.

xe sr-create name-label="Local ISO" type=iso device-config:location=/var/opt/xen/iso_import/ device-config:legacy_mode=true content-type=iso

Note: You may experience that new ISO's uploaded my not show in XenCenter even after you tried to refresh the storage repository. If so just run the above command again.