And people do a lot of searching for information about various locations - all the way from the country level down to suburbs and even streets! Of course, a high proportion of these searches relate to accommodation and real estate. But there are other general themes as well.
Even when you get down to the suburb level, it's quite surprising just how many searches there are. Type your suburb into Google's keyword tool and you'll see what I mean.
That's why it's always a good idea to include such words if you want that localized traffic. You're bound to corner some long-tail keyword searches eventually. And it can be useful to list neighbouring suburbs as well.
Say you're a plumber in Yokine. Obviously you should target that word specifically, repeating it a few times and perhaps even bolding it. But you could also include a line like: "We also service surrounding areas including Tuart Hill, Joondanna, Coolbinia and Nollamara."