The Readership Institute at Northwestern University has a look at two U.S. newspapers walking the talk on local content.
The Bakersfield Californian has been at it for a long time now, and in visiting it last year, it was evident that the culture had long since shifted. No persuasion needed any longer. The newsroom and the newspaper were now news providers and community enablers. Witness the local blogroll and how the outlet is the conduit for new communities of interest. And witness the extent of new applications digitally that serve the knowledge needs of the market.
The Corpus Christi Caller-Times is also at it vigorously, and its power appears to be in the engagement of the audience in comment about content. It's as if its site is one large --- and largely informed --- open-line show. Highly impressive. Nice it could fetch a great URL, too (caller.com)