From the Adwords Editor Advisory Staff:
In order to make it easier for you to manage your account and take advantage of location extensions, we’re releasing a new version of AdWords Editor, 8.0.1, for Windows and Mac.
AdWords Editor 8.0.1 now supports location extensions, our new and improved way to run local ads. To support this change, we’ve transitioned the local business ads in your AdWords account to ads that are compatible with location extensions, added the Extensions tab in the AdWords Editor interface, and removed the Local Business Ads tab. This new Extensions tab should help make it easy for you to create and manage your location extensions.
To manage your Adwords location extensions in AdWords Editor start by linking your campaign to a Google Places account. You can then use AdWords Editor to download and manage the business locations associated with that Google Places account.
Follow the steps below to sync one or more Google Adwords campaigns with Google Places:
To learn more about all of the new features in Adwords Editor version 8.0.1, such as support for campaigns using target CPA and enhanced CPC bidding options, read the release notes at Adwords Editor 8.0.1.