aramis erak
Legend
If you're running a high-body-count-low-property-damage Post-Apocalyptic campaign (like The Walking Dead or The Stand), would you rather set it in your local vicinity, or would you rather run it anywhere but your local area? I can think of advantages to both approaches, but my gut tells me I'd rather avoid the annoying "I know more about the area than you do" thing from players. And really, if the player is right, then he's right, and there doesn't seem to be much sense running a campaign set in a place where the players can know more about the setting than you do.
I prefer a third approach - an area that I'm personally familiar with, but my players are not. When I ran a buffy game, I set it in the city I've spent the most time in outside my home borough. I set my game in Corvallis, Oregon - while I lived in Anchorage, Alaska. Of my 8 players, only one had even been to Corvallis - and then, only twice, as a child.
Knowing the area helps me describe it, while them not knowing it means that, if I get things wrong, they won't know. And more than likely, as long as I'm consistent, won't care.