Hi Niners52,
I am quoting a very detailed answer on this by a moz staff Miriam Ellis. It is third consecutive day when I referring Miriam Ellis post but she really answered very well. Please check this
To begin with, it's important to understand that Google will typically see any local business as most relevant to its city of location. So, if you're located in San Francisco (i.e. have a dedicated local area code phone number and street address there) your prime location and best opportunity for achieving high visibility will be for searches that include the phrase 'san francisco' or performed by san francisco-based users.
You are in a very common situation in which you operate in a wide service radius. The typical process involves creating city landing pages for each of your main service locations, and though you typically will not be able to locally outrank competitors who are physically located in those service cities, you can strive for secondary organic rankings for these geo terms.
To make this manageable, make a list of your 10 most important service cities/towns. Develop unique, non-duplicate content for each of these 10 cities. Create a section in your main site menu labeled 'Cities We Serve' or something along those lines and begin listing the pages in this menu. If you don't feel you can create useful, creative copy, hire a copywriter for this important task. Then, move onto your next 10 most important service cities. Build it in manageable chunks and do your absolute best job on every page.
Beyond this, linkbuilding to the pages would be next steps.
Hope this gives you a plan of action that makes sense! "
You can read full post here @ http://moz.com/community/q/how-to-optimize-for-multiple-cities-on-website
Thanks
Thanks