This error appear as a dialog box when trying to load a project whose virtual directory had been created formerly.
Actually, there are two dialog box:
1. The first dialog box sounds: The local IIS URL http://localhost for Web project web has not been configured. In order to open this project the directory needs to be configured. Would you like to create the virtual directory now?
2. After clicking yes, the second dialog box appears: Creation of the virtual directory http://localhost/web failed with error: Could not find the server 'http://localhost' on the local machine. Creating a virtual directory is only supported on the local IIS server.
The solutions may vary in this case. Here are some possible solutions:
1. Make sure the asp.net is already registered to the IIS. You may want to try registering it to IIS
2. The virtual directory of the project might not have been set properly, so it can not be loaded. Edit the virtual directory of the project by right-clicking the project, choose Edit project (.csproj) file, then at the bottom part of the file, you may find something like <iisurl>http://localhost/</iisurl>
Change / add the name of the web project, e.g. <iisurl>http://localhost/webname</iisurl>
3. Make sure the IIS is running well on services.msc. To check it, press windows + Run, type "Services.msc" (without quotes), then restart IIS Admin.
Afterwards, restart the IIS by pressing windows + Run, type "inetmgr" (without quotes), then start the service.
4. This is a rare case, but someones might encounter it too. If you are using another web server on your computer, e.g. Apache, xampp, etc., make sure you stop the web server first, then start the IIS. In a case I met, it still didn't work, after about half an hour trying to find the problem, I found the issue. Someone changed the port used for the web server. So, I had to change it again.
On the IIS window, right click on the Default Web Site, choose Properties, then make sure the port used is 80 (I'm not sure if using another port is ok here).