Stereotypical bias encoded in language models (LMs) poses a threat to safe language technology, yet our understanding of how bias manifests in the parameters of LMs remains incomplete. We introduce local contrastive editing that enables the localization and editing of a subset of weights in a target model in relation to a reference model. We deploy this approach to identify and modify subsets of weights that are associated with gender stereotypes in LMs. Through a series of experiments, we demonstrate that local contrastive editing can precisely localize and control a small subset (< 0.5%) of weights that encode gender bias. Our work (i) advances our understanding of how stereotypical biases can manifest in the parameter space of LMs and (ii) opens up new avenues for developing parameter-efficient strategies for controlling model properties in a contrastive manner.