I am trying to build a small system which include a rPi and rPi Zero. rPi act as local wifi hotspot and rPi zero connect to rPi hotspot.Then I access zero camera through rPi. My diagram looks like this.
It works totally fine if I have a LAN connection. Once I remove the lan connection motionEyeOs won't stream any data. And even it disconnect from wifi and go to boot loop.
So my question, is there any way we can make motionEyeOs works with out actual internet ?.

The answer to your question: You can set link_watch="false" in /data/etc/watch.conf
But this come with a few other problems:
A hardware clock would help for the first problem but I am still searching for a solution for the second. If you already have one, I would appreciate it, if you could help me out.