I keep my code local and on SVN. Then I just commit every night to my SVN and still have my local copy.
Remember, SVN is not replacing your local filesystem. It's just a versioning system that will take what you have and store information about the files, as well as the files themselves. Then when you screw up, you can go back to a specific time/place. You should always have your local code. I never delete my local code, I just use SVN as a backup in case my computer dies (which tends to happen a lot with Windows).