Also see MimicDB [0]. Runs a transparent cache that responds to most S3 API calls locally using Redis to store metadata. Besides the cost savings, it's extremely fast. Listing an entire bucket with millions of objects is close to instantaneous.
Regardless, it's just a caching layer, and requests are passed through to the API in that case.
Send me an email nathan@nathancahill.com and I can show you how to set up a local cache. It's quite simple.