In February 2008, Google News launched a feature that allowed users to view local news. The feature is a section of the Google News homepage. Users simply type in their zip code or city and get headlines from their area. The feature, like most Google products and updates, debuted to a US-only audience.
Now, users in the UK, Canada, and India are getting the local news feature for their respective Google News sites.
If you can't find the local section on your page, click the "Personalize this page" link in the top right corner. Select "Add local section" and you should be good to go.