Maybe this?

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

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Deja View - The strange feeling that somewhere, sometime you've optimised this query before

How to get the best help on a forum

http://www.sqlservercentral.com/articles/Best+Practices/61537