You can use local master XML configurations as well as loading them from the mainframe.
When this feature is enabled, if you right-click the Team Developer Tree View and select Add System an entry will appear in the table relating to the local machine (for example Windows 7 | localhost). Clicking this will load a locally-configured master configuration XML file.
To enable this feature you must set the property teamdeveloper.masterconfig to a command which will write the required master configuration XML data to standard out (for example, execute a program or batch script that will create the data).