There have been numerous efforts at building services focused on local communities, and almost all of them, that have not had a community element to them, have failed to one degree or another.
Just being an aggregator is not enough. You need to curate. Moderate. Collate. Summarize. Connect. Most of all – communicate! Sure software helps. But it requires hands on work by people too. And it takes time. Like forming any relationship does.
GigaOm: Mathew Ingram: “Hyper-Local News: It’s About the Community or It Fails”
ReadWriteWeb: Marshall Kirkpatrick: “Hyperlocal Heartbreak: Why Haven’t Neighborhood News Technologies Worked Out?”