It means the locality of the basis function is controlled inside the basis function construction through the weight function. In general, MLS and RPKM are nonlocal methods because the neighbor nodes are not defined a priori. The neighbors are selected using a smooth "bell-shaped" weight function starting from the complete set of nodes that define the domain. On the contrary, other methods like RPIM are local because you first predefine the number of neighbors and then compute the approximation based on that predefined set of nodes.
in perfect agreement with the answer of Alejandro Ortiz-Bernardin, I can add that MLS and RKPM doesn't posses the delta Kronecker condition, this causes the nonlocal property and some difficulties to handle essential boundary conditions.
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