How to target Keywords based on Geo?

I've searched through many posts but have not found exactly what I'm looking for.

I would like to know how to target/rank for "local" keywords based on user location.

For example, say I have a bricks and mortar store in Texas that sells Cardboard Crushing Machines. I want to target and rank "Cardboard Crushing Machines" but really only for those people who search from within Texas.

My feeling is that most people don't search "Texas Cardboard Crushing Machines". Most people from Texas just search "Cardboard Crushing Machines".

What's the best way to target a local search that doesn't use the location in the search?

I want to know how to SEO for local searches without using the "local" in the keyword.

Thanks!

Surely someone knows!

Google places, build web 2.o with a lot of texas in it.