packaging django application and deploying it locally
This is possible. However, the client machine would need to be equipped with the correct technologies for this to work. 
When you launch a web app on a server (live), the server is required to have certain settings and installs. For example, a Django web app: the server must have a version of Django installed.
Hence, whichever machine is running your web app, must have Django installed. It presumably also needs to have the database too. It might be quite a hassling process but it's possible.
Just like as a developer, you may have multiple users working on 1 project. So, they all need to have that project 'installed' on their devices so they can run it locally.
I've never worked with Django before so forgive me if a question sounds stupid. 
I need to develop a web application, but I do not want to deploy it on a server. I need to package it, so that others would "install" it on their machine and run it. Why I want to do it this way? There are many reasons, which I don't want to go into right now. My question is: can I do it? If yes, then how?