I read that if too many clicks are from the same area you'll get banned. I'm going to start a website, that I know people in my city will love(about 500,000).. I can't say my idea because I don't want it stolen. Will I get banned if there's alot of clicks from the same city?(I won't be asking for free clicks, im sure people will buy stuff from the links)
you'll be fine, as long as you don't do anything fishy and that people are clicking freely, no problem clicks from a same area for a local site is normal.
It is natural for a website aimed at a certain area to get more clicks from that area. So as long as your clicks are valid and not generated by other means, Google would have no reason to ban you.
Actually, there is no problem about clicks from the same area - but beware of clicks from the same comp (same cookie-track!) - it might be the reason to ban you!
Goggle tracks the ads clicking through cookies and they will know if you using same computer to click on ads... SO As long as 100 clicks are coming from 40-50 computer having different ip as well you are fine..