Creating a local RPM repository

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I am currently reviewing the possibility of allowing some of our employees to use Fedora on their machines instead of Windows.  On of my concerns is the bandwidth tied up by multiple machines downloading the same RPMs through our Internet gateway.  Is there a way to set up a local RPM repository on our internal networks so that the RPMs only have to be downloaded from the main repositories once.  All of our user machines would be configured to look at the local repository instead of the main one.
As an example, I set up two test system yesterday with FC11.  After the initial install, each machine needed to download significant amounts of updates.  I would have much preferred that they got those updates from a local source.  This would have reduced the bandwidth clog on our gateway (3MB bandwidth) and reduced the install time due to the updates coming from a local source (1GB bandwidth).
Any suggestions or instruction would be greatly appreciated.
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