I live in Norwich, UK at the moment and there are a couple of local blogs I keep an eye on.
The Best of Norwich is actually run by Blurter Sara Greenfield, and is one of my favorite local portals. It's a great platform for Norwich-based business owners and people looking to network and make professional connections. The project is something I'd like to see replicated all over the country.
I'm also a fan of vintage style, fashion, and music - and VintageNowich.co.uk is a fun little blog for keeping up to date with retro goings on in Norwich.
I personally think it's really healthy for local communities to have an online channel to focus their offline bonds and connections, and community blogs are a great way of doing that.