Freeform surfaces like tensor product B-spline surfaces have been proven to be a suitable tool to model laser scanner point clouds, especially those representing artificial objects. However, when it comes to the modelling of point clouds representing natural surfaces with a lot of local structures, tensor product B-spline surfaces reach their limits. Refinement strategies are usually used as an alternative, but their functional description is no longer nearly as compact as that of classical tensor product B-spline surfaces, making subsequent analysis steps considerably more cumbersome. In this publication, the approximation quality of classical tensor product B-spline surfaces is improved by means of local parameterization. By using base surfaces with a local character, relevant information about local structures of the surface to be estimated are stored in the surface parameters during the parameterization step. As a consequence, the resulting tensor product B-spline surface is able to represent these structures even with only a small number of control points. The developed locally parameterized B-spline surfaces are used to model four data sets with different characteristics. The results reveal a clear improvement compared to the classical tensor product B-spline surfaces in terms of correctness, goodness-of-fit and stability.