Google has added a new Location featured to their Options sidebar, allowing you to filter search results to find things near you.
To access it, click the Show options link near the top of the search results page, then click the Nearby link. (You can also customise the location if your default isn't right and tweak the search depth based on city, region or state.) As is often the case with Google, the option may not show for everyone right away.
It's interesting to watch as more and more web services incorporate location; part of the original importance of the web was its ability to make location irrelevant, but clearly location is an important part of the web's future. [Refine your searches by location]