Note: The server that serves as your repository should only serve as a repository.
There are many reasons you may want a local Red Hat Enterprise Linux repository. Bandwidth is a major factor as downloading updates from the Internet can be time and bandwidth consuming. Another reason may be that your servers are not connected to the Internet and thus need to get their updates from a local source. You may have a development environment that you would prefer to not spend money on licenses for but still need to update. Whatever your reason, this tutorial will walk you through the process of getting your local repository setup.
Install packages needed for the repositories
yum install yum-utils createrepo httpd