LocalDB was introduced in SQL Server 2012 CTP3. It’s basically a new version of SQL Express, with same functionality, dedicated to developers. So you don’t need to install any SQL server. If you have installed SQL 2012 or Visual Studio 11 then you already have it, and it runs over .Net 4 or higher. If you are using Visual Studio 11 and have been playing with the new EntityFramework and MVC, you can see it on the default connection string.
When you start a debug session the LocalDB starts on a different process with a clean instance of SQL. When you stop the debug session, it stops. And this is quite fun since you get a full local dedicated database per debug session started and stopes by VS. The LocalDB also support Database as a file during the connection process letting the developers work on local MDF/LDF file.
