Yes, if you review the Sell Your Item form you are allowed to specify local pickup, choose Canadian dollars and choose "cash on pickup " as payment.
You can also review your auction bidders and cancel bids from "too far away", although I once worked with a girl who bought her Harley from Quebec City while living in Maniwaki.
If you do a pickup, don't allow the buyer to pay by Paypal. EBay requires that if you accept PP as payment, that you also have proof of shipping.