geographical psychology

I always wondered how people belonging to different location think and act differently. I am speaking in a generic manner.
The geographic distance might not be 1000 miles or different continents, but we can find differences in two different cities as close as 100km or so. I wonder weather its really have to do with geographical conditions prevailing in that location or has to
to with like minded people getting settled at one place.

We can say cultural/caste differences make people think in similar manner. But there are people who follow same culture, belong to same caste, speak same language, but live in different locations and their thinking differs( people of Davangere, Shimoga or Dharwad think differently ). So can we say geography plays a major role in grooming people in a good or bad way.

Still thinking.......