Questions re: Keywords for Web Copy

I'm writing the web copy for a therapist in Sydney, Australia. I'm also doing the keyword research, but wanted to be sure I'm going about it the right way as there seem to be so many different opinions.

This is a regular brick and mortar business, so I thought using local search terms would be best for his website. His goal, of course, is to attract new clients. My primary questions are:

I assume local keywords the best way to go to get targeted traffic?

Each page has about 350 to 400 words - what is the best KW density for this? I was thinking of using the keyword 3, maybe 4, times in the text (so, 1% - anything more and the text is going to sound dreadful). Is that enough?

For most of the terms I am considering, the number of competing sites (when I put the keyword in quotes) ranges from as low as 645 (which is great as that particular keyword gets 1900 local monthly searches - or so it says - I'm using the Google KW tool) up to around 10,500. However, one primary keyword has 103,000 competing sites - is that too many? What parameters are best?

Also, can I use the same keyword for two pages or should each page have it's own primary keyword?

Any other tips would be greatly appreciated. I just want to be sure I'm going about this correctly....

Thanks so much!!