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Multiple Business Locations in other Cities - Do I set my service area for all city locations?

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# 1
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I have a business that has two locations in neighboring cities. Do I set the service area for both GMB pages to include both cities or distinguish the two based on their location?


Here's what I mean:

1. Location 1: Located in Colorado Springs - service area is currently set to include Colorado Springs and Denver

2. Location 2: Located in Denver - service area is currently set to only Denver


Which is better or correct?