Local fool seen dancing there with heavenly creatures? (7)

I believe the answer is:

pinhead

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'local fool' is the definition.
'pinhead' can be an answer for 'fool' (I've seen this before). I am not sure about the 'local' bit.

I don't understand the remainder of the clue.

Can you help me to learn more?

(Other definitions for pinhead that I've seen before include "Where many divine creatures dance" , "fool" , "On which angels dance?" , "Anything very small; stupid person" , "Restricted area where angels don't fear to tread" .)

I've seen this clue in The Irish Times.

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