The "local option" mentioned in this episode refers to that permitted by 1878 Canada Temperance Act, also known as the Scott Act, which allowed municipalities to prohibit alcohol by local referendum. The law remained on the books until 1984.
The real Carrie Nation (25 November 1846 - 9 June 1911) was a Kentucky-born leader of temperance. After her first husband died of alcoholism, Carrie Nation started a local chapter of the Women's Christian Temperance Union in Medicine Lodge, Kansas. She became infamous for leading "hatchetations" (destructive hatchet raids) against saloons and taverns. She also refused to wear a corset and encouraged other women to to likewise. In 1901, Nation established a shelter for wives and children of alcoholics which became the prototype for modern battered women's shelters.
Carrie Nation stood nearly 6 Feet tall. Quite the difference from her portrayal on this episode.
This episode takes place in 1903.