Updated: Mar 18, 2019
Term sets that are specific to the site collection are called Local Term Sets. These local term sets can be used only within the site collection and the subsequent sub sites. Local Term Sets will be stored in the Term store. In this article you will how to create local term sets in SharePoint 2010.
Create Managed Metadata Column with local term set.
Navigate to the site collection http://serverName/sites/MMS-CTH/.
Go to Shared Documents, click on the Library tab in the ribbon interface.
Click on the Library Settings in the Settings group.
Click on Create Column in the Columns section.
Enter the Name as Local Metadata and select the type as Managed Metadata as shown in the figure.