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Yep.
For the simple response - they group all the searches from your location based on IP, and the results are weighted from that.
So if your town has a airshow on, all the DDG users that search for airshow near you will bump those responses up the weighting scale for all uses in your area. Regardless of you search for it.
The location is very rough, not even the same town. Usually it things I'm in a while different country in Europe