Read more at:
[adwords.google.com...]
Your ad is locally targeted. When Google displays your locally targeted ad, the ad includes the name of the targeted city or region to those who are identified by IP as being in that city or region.
This is mentioned in the page referenced by IndianGuardian, but I thought I'd add it here for those who don't care to follow links.
AWA
<edit> Identity crisis! Correct my own screen name. Yikes! </edit>