The Database files can reside on different local drives for our SQL Server versions.

If the server has multiple SCSI hard drives, database performance may be enhanced by moving the log file on a separate drive from the other database files.

If the server uses IDE drives or if the drives are partitioned, database performance cannot be enhanced by moving the log file (*.ldf) on a separate drive from the other database files.

Refer to the following solutions for instructions:
How to move the SQL Server log file to a new location on the same server