You can run the HDInsight field locally. This is separate from Azure storage and computer emulation, and is installed through the Web Platform installer (just search for HDInsight).
There are some subtle differences between the local and azure versions, since the local version works with data stored in HDFS, while in the cloud you can use Azure Blob Containers. As for the development and testing of conversion processes (in MapReduce / Hive / Pig), it does not matter. The only difference is how you could receive and enter data.
Please note that you can certainly create MapReduce jobs from C # to HDInsight, for basic data transformations it can be much easier to use a higher level language such as Pig or, possibly, HiveQL based on HDInsight.
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