DeBracy said:
This seems very rare to me when it comes to d20 books. I've heard that there is something of the sort in the Forgotten Realms CS (correct me if I'm wrong) and without looking it up I dare guess that there's something in Conan as well...? Otherwise I haven't really seen or heard of any more products that involve "crunchy culture".
Yes, the Forgotten Realms has a system like this for depicting culture and home region.
There are separate entries for each geographic region, typically a single kingdom or distinct geographic area is it's own "region". In later books, major distinct areas of the underdark also counted.
Knowledge (Local) has to be specific to a region. You can have Knowledge (Local: Dalelands) or Knowledge (Local: Waterdeep), but not just Knowledge (Local) that works for anywhere. Since many campaigns can be based entirely out of one region (Dalelands, Waterdeep, Silver Marches ect.), this isn't a huge limitation.
A region first recommends which subrace/ethnicity you are. Human ethnicities really have no game mechanic, but it does at least remind you that not all people look the same.
It also gives you an extra language besides Common, based on your region. There is an assumption that a more local language is used widely in day-to-day life and among everyday folk, and that while Common is known by most everyone, it's most often used by travellers, for trade, and as a universal second language. It also defines what your Bonus Languages from Intelligence can be (a list of languages commonly spoken in the area), and what the most commonly worshipped deities are for the area.
There is also selections of Bonus Equipment, two or three options of additional starting equipment, worth about 300 GP (since the Realms is a slightly higher powered setting than normal), that reflects the tone of the region. Magical lands may give a wand of a 0th level spell with 20 charges or a potion or two, while people from lands with a history of warfare may get a free masterwork weapon or armor (expatriates from the oriental part of the world can of course get a Katana), while mercantile lands just offer raw cash, the equipment does seem to reflect the "style" of the area.
Lastly, there is the most famous "big crunch" of system, the Regional Feats. You can only have one Regional Feat, and you must take it at 1st level. Each region has anywhere from three to six of these feats, and they are distinctly more powerful than normal feats (but you can only have one, and the Realms are a somewhat high-powered setting). Examples of Regional Feats can include Militia (you are a member of a militia, and thus proficiency with all martial weapons), Magical Training (you come from a land where magic is very common and taught to all, you can choose three cantrips and cast each one once a day), or Education (you actually had a formal, comprehensive education growing up, and all Knowledge skills are always class skills for you, as well as +2 to two Knowledge skills).
So that's how they do it.