diff --git a/qiskit/providers/aer/backends/aerbackend.py b/qiskit/providers/aer/backends/aerbackend.py
index 215c84fa6f..0fd4652704 100644
--- a/qiskit/providers/aer/backends/aerbackend.py
+++ b/qiskit/providers/aer/backends/aerbackend.py
@@ -84,6 +84,7 @@ def __init__(self,
         """
         # Init configuration and provider in BaseBackend
         configuration.simulator = True
+        configuration.local = True
         super().__init__(configuration, provider=provider)
 
         # Initialize backend properties and pulse defaults.
diff --git a/releasenotes/notes/config-local-46d47ae08eeab339.yaml b/releasenotes/notes/config-local-46d47ae08eeab339.yaml
new file mode 100644
index 0000000000..658dbfef56
--- /dev/null
+++ b/releasenotes/notes/config-local-46d47ae08eeab339.yaml
@@ -0,0 +1,6 @@
+---
+fixes:
+  - |
+    Fixes bug where creating a simulator from a backend would set the
+    ``local`` attribute of the configuration to the backend value
+    (typically ``False``) rather than always being set to ``True``.
diff --git a/test/terra/backends/test_config_pulse_simulator.py b/test/terra/backends/test_config_pulse_simulator.py
index 171ff48c5a..ed8059233c 100644
--- a/test/terra/backends/test_config_pulse_simulator.py
+++ b/test/terra/backends/test_config_pulse_simulator.py
@@ -54,7 +54,9 @@ def test_from_backend(self):
                 desc = 'A Pulse-based simulator configured from the backend: fake_athens'
                 self.assertEqual(sim_dict[key], desc)
             elif key == 'simulator':
-                self.assertTrue(sim_dict[key], True)
+                self.assertTrue(sim_dict[key])
+            elif key == 'local':
+                self.assertTrue(sim_dict[key])
             else:
                 self.assertEqual(sim_dict[key], backend_dict[key])