Fred,
Exceedingly bad manners, IMHO, and possibly a breach of your copyright in the photographs as you had specifically requested the acknowledgement. If it were me I would write and express my displeasure. I would guess that, as a local history book, the initial print run would be small. Tell him if he does a second print run to ensure the photograph is credited as agreed. Organisations like the Imperial War Museum will allow writers of very short run books to use their photographs royalty free (you still pay for a copy) but they do insist on a proper credit, i.e. the source and the catalogue number, and this would seem to me to be the form for any similar source. I have recently written/published a couple of WW1 books for which a large number of people have supplied photographs or biographical information (sometimes both) and everything is credited, i.e. photographs, footnotes, appendices, etc. Seems to me to be the right thing to do.
Bill