A host of new, hyperlocal news sites have emerged, offering information targeted to a small, specific locality. Sites like EveryBlock, Placeblogger, and Outside.In aggregate information for residents, and some even do their own reporting. Generating revenue for the sites remains a challenge, however, as they inherently speak to a narrow group of people. They must also address concerns of reliability and sustainability as the sources they pull from are going out of business.
You can read about the latest battle in the hyperlocal news realm in this New York Times article.