A local basis algorithm for searching natural neighbours in Natural Element Method (NEM) is presented for solving the elasticity problems in this paper. Comparison with the global sweep algorithm used in natural element method or Natural Neighbour Method (NNM) for searching natural neighbours, the proposed algorithm is more expedient and convenient in the constructions and computation of natural neighbour interpolations. In the proposed NEM based on local search, the Laplace (non-sibson) interpolations are constructed with respect to the natural neighbour nodes of the given point which have been locally defined. The shape functions from the Laplace approximations have the delta function property and the Laplace interpolants are strictly linear between adjacent nodes, which facilitate imposition of essential boundary conditions and treatment of material discontinuity with ease as it is in the conventional finite element method. The Laplace interpolants derived from the local algorithm and the global algorithm in NEM are identical because of the uniqueness of the Voronoi diagram. Numerical results and convergence studies also show that the present NEM based on local search algorithm possesses the same accuracy and rate of convergence as they are in previous NEM.