If you're just working within an office that has access to a network drive, yes.
Just keep the Central file on your firm's network drive. When users access the Central file, it creates a local file on their harddrives; they work in their local file and Synchronize with Central to send (and get) updates.

If you're working with consultants that do not have access to your firm's network drive, you'll want to consider the central server benefits.

Yes--on a LAN. The term "Central Server" is really a "Revit Server-WAN" name for a specific server used in collaborating using Revit Server software with multiple remote office/locations.

So the term "Central Server" can be misleading. If you want to set up worksharing in a single office, with a LAN--then you will need one computer to host the "Central File", and the local machines create a local copy, check out Worksets, edit elements on those worksets, and Synch to Central.

Hope this helps.

Edit: Leanne and I replied almost simultaneously, with almost the same answer!

Charles, do you mean a central SERVER machine, or a central FILE? You can certainly do Worksharing without Revit Server. And you can do Worksharing without a server machine running Windows Server. You could even do it with the Central FILE on a workstation that everyone connects to. But the only way to do Worksharing will require a single Central FILE somewhere, that all users make a Local copy of. Even if the Central file happens to live on one person's machine, they still need to make their own local copy of it.
That said, I would never recommend it. At a bare minimum you want a dedicated machine acting as a server, even if it is only running Windows 7. For a small office it really doesn't take much horsepower to be a Peer Server like this.

Hope that answer's the question, or at least leads to further questions.

Gordon

Thank you all for your valuable advice,...we are retiring Archicad and we will proceed with the Revit install. We will keep our central file on the network.

Welcome aboard, and good choice!