A meshless local radial basis function method is developed for two-dimensional incompressible Navier-Stokes equations. The distributed nodes used to store the variables are obtained by the philosophy of an unstructured mesh, which results in two main advantages of the method. One is that the unstructured nodes generation in the computational domain is quite simple, without much concern about the mesh quality; the other is that the localization of the obtained collocations for the discretization of equations is performed conveniently with the supporting nodes. The algebraic system is solved by a semi-implicit pseudo-time method, in which the convective and source terms are explicitly marched by the Runge-Kutta method, and the diffusive terms are implicitly solved. The proposed method is validated by several benchmark problems, including natural convection in a square cavity, the lid-driven cavity flow, and the natural convection in a square cavity containing a circular cylinder, and very good agreement with the existing results are obtained.