'What was the function of "Auth-Type := local" in an out of date Radius server configuration?

I Have an old radius user configuration for an old product that I need to port to a newer version. in the users file, I see:

testuser    User-Password := testPassword
            Auth-Type := Local 

(My understanding is that User-Password should be updated to Cleartext-password)

What is the function of Auth-type := local? I see lots of references to how this should never be done in modern radius, and you should use things like Auth-type := pap instead, but no mention of what local actually means in this context



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