Here is an article by Karon Thackston where she talks about when people are looking for something local on the web, they will type in specific words so SEOs need to incorporate those words in the copy that make it readable but not losing any rankings.

"Regardless of what you're promoting to your local audience, when it comes to using local keyphrases within search engine copywriting, you don't have to sacrifice readability for high placement. Use either of these tips to help you achieve both goals, and you'll be well on your way to higher rankings and improved conversions."

I'm getting a "not found" message when I click on the link to Karon's article.

I will stress that at the very least, if someone has a web site that is intended for a local audience, they should use their address - city, state, etc., on the web site, and that it should be in text, so that search engine spiders can index it.

I see too many local businesses putting up sites, and using image text only to display their address on their pages. The search engines won't index those addresses.

Sorry about that... I thought I double checked....