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Noton - 7:47 am on Apr 28, 2009 (gmt 0)
It matters the country you host in, so if you wanted to be seen as a Canadian website hosting in Canada by default does that. If you want to host outside of Canada you can create a Google Webmaster Tool account and change your website settings from the US to Canada. As for city level, currently while Google does GEO target results at a city level there is no switch/setting to control this, in the future I sure that Google Webmaster Tool will allow this, but at present its based on traffic patterns to your site.
Ivan,