noun
BAD : The airport extension is strongly opposed by the natives.
GOOD : The airport extension is strongly opposed by the local residents.
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Nowadays the noun native is usually used in formal styles to refer to the place where someone was born: 'His real name was Harvey Pepper, a native of Montreal.' or to the country/region where a particular animal or plant has always grown: 'This useful herb is a native of southern Europe, but has adjusted well to colder climates.'
To refer to the people who live in and around a village, town or city, and have shared interests and activities, use local residents , local population or (in informal styles) locals : 'Local residents are against the motorway proposal.'