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Thanks for the responses.  Yes, we are worried about too much interlinking and that being seen as manipulative. I do think we're leaning towards a completely separate domain.  I'll just have to be careful with the links.

Hi there! Just a quick note to let you know that we now do track local rankings in Moz. Check it out at http://moz.com/blog/local-rankings-in-moz-analytics.