The most common and most likely answer to this crossword clue is the 6 letter word LOCALS
I've seen this crossword clue in The Daily Telegraph
L
O
C
A
L
S
More clues leading to the result LOCALS
Buddy explains!

The straight part
We know that "People living nearby/their pubs" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case people living nearby/their pubs = locals.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does LOCALS mean?
LOCALS noun- A person who lives near a given place.
- A branch of a nationwide organization such as a trade union.
- A train that stops at all, or almost all, stations between its origin and destination, including very small ones.
- One's nearest or regularly frequented public house or bar.
- A locally scoped identifier.
- An item of news relating to the place where the newspaper is published.
- An anesthetic (anesthetic substance) that causes loss of sensation only to the area to which it is applied.