Use the defining criterion that a flat module makes injective for every injective module homomorphism . By right exactness of the tensor product, preserving injections is equivalent to preserving every short exact sequence.
First assume is flat over , and fix a maximal ideal . Let be an injection of -modules. Regard it as an injection of -modules. There are natural module isomorphisms
For example, maps to , with inverse . These are well-defined because every already acts invertibly on . Under these isomorphisms the tensor map is , which is injective by flatness. Thus is flat over .
For the converse, assume every is flat over and take any injection of -modules. By part (c), each is injective. Since localization commutes with tensor products, the localization of identifies with
It is injective by the assumed local flatness. Apply part (c) again, now to , to conclude that it is injective globally. Since was arbitrary, is flat. Therefore
This proves flatness is local without any finite-generation hypothesis.