Hi, A district is usually an administrative area (eg the District of Columbia in the USA) or an area that has a lot in common geographically (eg the Lake District in England). A locality is a little more vague and general in definition. It's a bit like 'area' or even 'neighbourhood'.
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Clive I'm not surprised that your directory uses districts, but I'm a little surprised that it talks about localities.I was actually referring to dmoz.org directory !