I\'ve created more projects using ReportViewer 2005 and 2008 in local processing mode than I can count on my hands. All Visual Studio 2005 or 2008 ASP.NET web forms projects
Here are a couple solutions. Number two is much better as it doesn't require needlessly duplicating your assemblies.
As added to the question itself and described in the post Visual Studio 2010 Report Viewer - Object Datasource, just create a separate library for the project and add the rdlc file there. This appears to be a bug with the MVC Web Application project type itself so any other project type (like a Class Library) should work. The data source configuration wizard should now look like this:
As figured out in Can't see or add Website Data Sources in RDLC report in ASP.NET MVC, you can just add an .aspx page anywhere to the MVC project in order to trick Visual Studio into pulling in the right design time libraries.
Just do the following:
Open up the RDLC file and choose a DataSource from the dropdown: