Claire Cain Miller and Brad Stone (NYT, registration required) wrote a useful article on hyperlocal newspapers designed to provide rich content about people and events within a few blocks of the reader.
As large newspapers struggle to maintain far-flung bureaus - falling one by one to more nimble online resources - hyperlocal papers concentrate on concrete notions of space.
As the Knight Foundation's Gary Kebbel puts it, “Our democracy is based upon geography, and we believe local information is such a core need for our democracy to survive.”
Hyperlocal papers are a little more sophisticated than the average neighborhood gazette, though, using GPS, sophisticated search techniques, and blog-content gather material. Advertisers are the types of small business that once limited their presence to the Yellow Pages.
Read the entire article: http://www.nytimes.com/2009/04/13/technology/start-ups/13hyperlocal.html