Question on the format of this sentence

[Icy-Flame]

I think this line means I live near here, but I'm not sure how the sentence was put together

この近くにすんでいます。

I would like to know what the literal translation of this line is and why the この　is there.

[Mukade]

Icy-Flame wrote:
I think this line means I live near here, but I'm not sure how the sentence was put together

この近くにすんでいます。

I would like to know what the literal translation of this line is and why the この　is there.

Literal translation:
この = this place (with place being implied)
近くに = close, nearby
すんでいます = am living

Think of a similar sentence:
マクドの近くに住んでいます。
I live near MacDonald's.

Hopefully, it's clearer from this sentence that の is used to connect the location word 近く to the place that the location is modifying マクド.

学校の近く = near school
郵便局の向かい = across from the post office
銀行の隣 = next to the bank

When you want to make a statement of location in relation to where you are right now, then you use この〜. Similarly, if someone is talking about a distant location - their house, for example - and the location is understood, you can reference it simply with その〜.

その近くにバーがありますか。
Is there a bar near there?

Does that make sense?

[Diggity]

OK your reply leaves me with questions... I am currently working on Ko- So- A- Do-; in my Genki textbook.

I thought (kono, sono, ano, dono) were to designate things (this, that, that (away from both speakers) and which - respectively.)

And that (koko, soko, asoko, doko) were to designate places (here, there, there (away from both speakers) and where.)

[clay]

Diggity wrote:
I thought (kono, sono, ano, dono) were to designate things (this, that, that (away from both speakers) and which - respectively.)

And that (koko, soko, asoko, doko) were to designate places (here, there, there (away from both speakers) and where.)

koko deals with location in relation to the speaker. Here, there, over there...

"A place" is actually a thing so you can use it with kono. kono has to have something to point to, so even if there isn't anything there, it is understood.

I guess the above example sentence is shortened from:
この辺の近く
kono hen no chikaku
this-area-'s-near
Near here.

Both sentences mean the same thing.

This is a bit confusing if you think about it too much.