Select Distinct State, (Select Stuff((Select char(10) + City
From #tempCityState
Where State = t.State
FOR Xml Path('')),1,1,'')) AS Cities
From #tempCityState t

Select Distinct State, (Select Stuff((Select '
' + City
From #tempCityState
Where State = t.State
FOR Xml Path(''),TYPE).value('.','VARCHAR(1000)'),1,1,'')) AS Cities
From #tempCityState t

Create TABLE #tempCityState (State Varchar(5), City Varchar(50))

Insert Into #tempCityState
Select 'CO', 'Denver' Union
Select 'CO', 'Teluride' Union
Select 'CO', 'Vail' Union
Select 'CO', 'Aspen' Union
Select 'CA', 'Los Anggeles' Union
Select 'CA', 'Hanford' Union
Select 'CA', 'Fremont' Union
Select 'AK', 'Wynne' Union
Select 'AK', 'Nashville';


--Select Distinct State, (Select Stuff((Select ',' + City
--From #tempCityState
--Where State = t.State
--FOR Xml Path('')),1,1,'')) AS Cities
--From #tempCityState t;

with States as (
select distinct
    State
from
    #tempCityState
)
select
    State,
    stuff((select '' + City + char(13) + char(10)
           from #tempCityState tcs
           where tcs.State = States.State
           order by tcs.City
           for xml path(''),TYPE).value('.','varchar(max)'),1,0,'') as Cities
from
    States;


Drop table #tempCityState