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From the release notes:
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- Added regional draft option
*Teams can be assigned to draft from specific regions, and there can be one or more rounds at the start of the draft where teams must select from those regions
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So each team has an optional setting (and I believe there's a page that shows all teams together), and then in League Settings you can choose to have x number of regional rounds at the start of a draft, where each team either has exclusive rights to players from their draft region, or is simply limited to a certain area.
Finally in the World section (I think) there is a Regions page, and you can create your own custom regions if the area you want isn't already a preset (individual countries in Europe, for example).
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Bob Uecker, RIP
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