Collect and encourage local literature through "local bookshelves"
Encourage local writing (and writing in general) - fictional and non-fictional - through a number of steps:
Catalogue/publicise on a simple website the small-published and self-published work by the local community (e.g. start off with photo books, poetry, short stories, novels, etc).
Set up workshops/training for how to self-publish, and maybe how to take an idea to a publisher. Possibly integrate with writing workshops?
Work with local libraries/bookshops to fund small runs of self-published work and disseminate through a "local bookshelf" in these places. Possibly integrate with online services such as goodreads.com.
Suggest "community publishing projects" to bring together works around a theme, encourage collaboration, etc.