Google News goes local
All you have to do is visit the Google News homepage, scroll down the page a bit until you see a box asking for a city, state, or zip code. Fill in the box, and Google will add a local section to the page. You can also click the hyperlink to get a standalone page. For example, this link takes you to a Google News for Chicago.
There's no real local search tool yet. If you enter a search term from a local news page, you still get global search results.
[via Google Blogoscoped]