Composed of 地 (dì, "earth/ground") and 方 (fāng, "direction/area"). The compound 地方 has been used since classical Chinese to mean "a region of the earth," and over time it broadened to refer to any place, location, or part of something. Note: when used as a general noun meaning "place," the second syllable 方 is typically pronounced in the neutral tone (fang), losing its original 1st-tone reading.

地方 also carries a political-administrative sense in Modern Chinese: 地方政府 (dìfāng zhèngfǔ) means "local government," as opposed to the central government (中央政府). This formal usage is common in news media and official contexts, so don't be surprised if a word you associate purely with "place" shows up in political headlines.