In many real situations, networks grow only via local interactions. New nodes are added to the growing network with information only pertaining to a small subset of existing nodes. Multilevel marketing, social networks, and disease models can all be depicted as growing networks based on local (network path-length) distance information. In these examples, all nodes whose distance from a chosen center is less than d form a subgraph. Hence, we grow networks with information only from these subgraphs. Moreover, we use a likelihood-based method, where at each step we modify the networks by changing their likelihood to be closer to the expected degree distribution. Combining the local information and the likelihood method, we grow networks that exhibit novel features. We discover that the likelihood method, over certain parameter ranges, can generate networks with highly modulated communities, even when global information is not available. Communities and clusters are abundant in real-life networks, and the method proposed here provides a natural mechanism for the emergence of communities in scale-free networks. In addition, the algorithmic implementation of network growth via local information is substantially faster than global methods and allows for the exploration of much larger networks.