YOU can, but you have to change from using SQL server to a "local" DB such as SqLite or Access - but even then, don't put the DB in the application folder:
Where should I store my data?[
^] explains why and shows how to use somewhere better.
But be aware that using a local database means you can't share it with others: if you need to do that, you need to stick with SQL server, and make your connection string configurable rather than hard coded (which is a damn good idea anyway).