Originally Posted by Duekster
I have not seen that ad words geo that granular but please enlighten us.
No problem. If you go in to Adwords campaign manager, select a current campaign, or create a new one, and under the "Locations" section, select "Let me choose". You can add down to the zip code-level. So, if you add a zip code, you can then click "Nearby", and that will open a Google Map, allowing the flexibility to include a specific search radius, via "Radius Targeting", for whatever location you want to geo target.
For example, if you want to target potential customers from within 12 miles of your shop, you can do so via this feature.