as i understand how it works, you need to use iis for compile your projects, so you need to use iis in any case. Only you can keep vopy of your project in pc, for you can work faster in developing process.

look here http://www.411asp.net/home/assembly/datetime

tool> option...> prjects> web settings the default path

In new Project dialog, there is field 'location', you can easy change it by 'browser' button.