The director drew on local resources, casting villagers as the extras.
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history
From Li Yu's Qing essay 《笠翁偶集·三·手足》: 就地取材，但不失立言之大意而已矣 — used metaphorically of picking rhetorical examples from immediate surroundings rather than ransacking the classics.
usage
Literal uses dominate: construction, cooking, filmmaking, craft. Figurative use (e.g. drawing anecdotes from daily life) is also fine. Often praised as practical and economical; contrast with 舍近求远 (ignoring what's nearby to chase the distant).
