Yes, you install the printer locally by using the wizard and then share the printer either during the wizard or after the fact.
Your clients on the network will be able to connect to the printer by UNC path: \servername\sharename
If you have various clients on the network (XP, vista, 7, x86, x64, etc.), you'll need to install of the various drivers for that printer. Once the printer is created, right click properties..in one of the tabs, you can install additional print drivers.