WordPress query unique post meta – finding all of one value without duplicates for a drop down

Can’t you just add the city/state as a tag. Then you could add the tags accordingly to show the required ones for the related posts. You could then use them in your template with:

<?php the_tags(); ?>

Form more info about tags see the codex page:
WordPress Tags Codex Page

If you need more control you might consider using taxonomies:
http://codex.wordpress.org/Taxonomies