Google News crawls thousands of sources from around the world to get as many different perspectives on a story from many perspectives. The Google News blog has released a new feature called “local news”.
To find your local news by simply typing in a city name or zip code, and Google will show you the most relevant news related to your location. Until now, you could create a custom section that showed the most important news that contained your terms, but the new location does a better job at identifying locations.
[…]While we’re not the first news site to aggregate local news, we’re doing it a bit differently -- we're able to create a local section for any city, state or country in the world and include thousands of sources. We’re not simply looking at the byline or the source, but instead we analyze every word in every story to understand what location the news is about and where the source is located.
As always, results will be clustered with multiple sources on a story. The top stories for a given area will be at the top of your results. Our article rankings will also take into account a publication's location so we can promote all the local sources for each story.[Google News Blog]
You can create as many local sections as you want by clicking on "Edit this personalized page" and selecting "Add a local section". It would be nice if Google News adds the layout options from iGoogle and makes it easier to rearrange the sections and add new content. Google could also display a lot of interesting content about a location (popular videos, photos, blog posts, events, community maps) in a special iGoogle tab.
Google, Google News