It is a function of Bonjour. You can get Windows PCs to resolve .local names by either installing Itunes (ick) or by installing the Bounjour Print Service. Most *nix devices can be persuaded to broadcast .local mDNS names using Avahi. Though Avahi can be a right pain to get working.
You may be able to enable either Zero-Conf, mDNS, or DNS-SD in the printer settings which may allow them to populate as with .local addresses.