who generates the local proxy for the remote

In any distributed-OO infrastructure (ejb, rmi, wcf, remoting...), someone needs to generate a proxy class based on the server-side
API. If you aren't paying attention, you will not notice where, when and how exactly this is generated. But this is a crucial detail
not to be missed.

There's a bit of ambiguity over 2 related concepts -- Instantiating a proxy instance (at run-time) vs Generating a proxy class
source code before compiling.

(I like to say "client-side proxy" but the adjective is superfluous. )

--- WCF ---
Usually i generate the "service reference" from a wsdl or the service endpoint URL.