Which method is better?

I'm about to get strong into ranking generic local sites, for keywords that get good searches, and low(in backlinks) competition.

My question is, should I make one central site for this whole "area" of cities, or make individual sites for the individual cities, as I could get exact match this way, but my site will have less content... Quite the conundrum, lol.

Example being, genericsite.com/localkeyword1, genericsite.com/localkeyword2, is that enough to beat the higher PR domains if I do anchor text specific high quality link pushes for every page?

Heres an example of one of the KWs for reference



Thanks much you guys!

Yo, anyone have any experience with these kinda sites?

Your image is down...

Haha, shit, sorry. Not all too sure as to what could've violated their TOS about this pic, but whatever.
http://i52.tinypic.com/2zowu3a.jpg

I think creating one authority site on the subject will help you rank more consistently over time. Just my thoughts

Yeah, that seems to be the way I'm leaning too. I feel like the unique content would outweigh exact domains.