Nec, it simply means fantasy set in the modern world I guess. I'm feeling lazy today.. I've copied & pasted the following:
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Urban fantasy is a subset of contemporary fantasy, consisting of magical novels and stories set in contemporary, real-world, urban settings -- as opposed to 'traditional' fantasy set in wholly imaginary landscapes, even ones containing imaginary cities, or having most of their action take place in them. The modern urban fantasy protagonist faces extraordinary circumstances as plots unfold in either open (where magic or paranormal events are commonly accepted to exist) or closed (where magical powers or creatures are concealed) worlds.
Although history of modern urban fantasy can be traced as far back as the 1920's (particularly in the field of children's fiction), it was in the 1980's that the term became widely used among adult fantasy writers and readers â€” and that the form grew in popularity to become a sub-genre of its own. Pioneers of this genre were Charles de Lint (author of Moonheart and the Newford series), Emma Bull (War for the Oaks), John Crowley (Little, Big), Megan Lindholm (a.k.a. Robin Hobb, The Wizard of the Pigeons), Jonathan Carroll (The Land of Laughs), Matt Ruff (Fool on the Hill), and Terri Windling (in her role as editor of the Ace Books fantasy line, and as creator of the Borderlands series). Subsequent authors to enter the field and expand its territory include Kelley Armstrong, Richard Bowes, Francesca Lia Block, Nina Kiriki Hoffman, Holly Black, Mercedes Lackey, Jim Butcher, Neil Gaiman, CaitlÃn R. Kiernan, China MiÃ©ville, Laurell K. Hamilton, and Kim Harrison.
Give Charles de Lint's books a chance the next time you come across his books in the library? http://www.sfsite.com/charlesdelint/
Currently been hooked on Heroes.....
Save the cheerleader, save the world!!!