How to create a shipping rate for local customers??!

Hi,

I am trying to create a shipping rate/ postal rate, for people who live nearby me. I went to create this in the 'Shipping Rate' option, but it wants me to select DHL and UHS only.

Essentially I want only two postage types, one calculated by the auspost module (that I still cant edit) and one of $5 that I will hand deliver to nearby suburbs.

I wanted to just put in the postcode for these suburbs and the app would match it with the delivery address of the purchaser, and if they match they allow them just to pay the $5. Perhaps this is more of a postal issue/ that i need to edit? This is accessible from the admin/ config/ shipping section, but I still need to create this somewhere .. maybe 'flex shipping' Huh

Does anyone know if it is possible to do this?