If your local station streams online, you can listen to it on your Droid, just not in a cool AP.
I've used moodio.fm for years on my blackberry, and now on my Droid to stream my local stations.
They recently changed their name to mymuze.fm. but either way, check that site out. You create a free account, which is just an email address then you can search for your station and if its not there, you can add it. It sucks that it plays in the native player, and you literally can't do anything else or it will stop the stream, but for certain local stations, its the best free option.