In this thread, jared says:

We’ve built a tool to help find local shops in your area.

In the same light as Pounce, it’s super fast, minimizing calls to the database and providing simple functionality:

http://www.etsy.com/shop_local.php

This is a sneak peak rollout to gather your feedback and find any bugs that may be hiding. Constructive suggestions are appreciated.

If all goes well, this will be released sitewide as early as tonight. Just in time for all you last minute shoppers!

Some things to note:
* limited to last 100 most recently updated shops
* searches against the ‘City:’ field provided in the public profile
* partial matches ok eg. ‘Albuquerque’ will match ‘Albuquerque, New Mexico’.
* be creative with your search terms. sellers put all kinds of text for their ‘location’.

Thanks for your continued support!