Local EAP authentication on Wireless LAN Controllers was introduced with Wireless LAN Controller version 4.1.171.0.
Local EAP is an authentication method that allows users and wireless clients to be authenticated locally on the controller. It is designed for use in remote offices that want to maintain connectivity to wireless clients when the backend system becomes disrupted or the external authentication server goes down. When you enable local EAP, the controller serves as the authentication server and the local user database, so it removes dependence on an external authentication server. Local EAP retrieves user credentials from the local user database or the LDAP backend database to authenticate users. Local EAP supports LEAP, EAP-FAST, EAP-TLS, P EAPv0/MSCHAPv2, and PEAPv1/GTC authentication between the controller and wireless clients.
Local EAP can use an LDAP server as its backend database to retrieve user credentials.
An LDAP backend database allows the controller to query an LDAP server for the credentials (username and password) of a particular user. These credentials are then used to authenticate the user.
Local EAP Authentication on the Wireless LAN Controller with EAP-FAST and LDAP Server Configuration Example
http://www.cisco.com/en/US/products/ps6366/products_configuration_example09186a008093f1b9.shtml