From 1.30.7 you can also attach a City to State. See below video

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Edit Area / City from admin

Edit Area

Attach city and save

Save New Area / City In Front End Submission

If you let the city / area be input fields (synced with google places), the City and Area are saved in the database automatically as linked together.

Set this to yes

These values added will automatically be saved as connected

The city > area connection is used in:

Search:

Properties List / Taxonomy – standard template