includes/templates/your_template/templates/tpl_modules_create_account.php (your_template is the actual name of your template this is only a reference)
Around line 78 and 79 change from
<label class="inputLabel" for="city"><?php echo ENTRY_CITY; ?></label>
<?php echo zen_draw_input_field('city', '', zen_set_field_length(TABLE_ADDRESS_BOOK, 'entry_city', '40') . ' id="city"') . (zen_not_null(ENTRY_CITY_TEXT) ? '<span class="alert">' . ENTRY_CITY_TEXT . '</span>': ''); ?>
to
<label class="inputLabel" for="city"><?php [B]//[/B]echo ENTRY_CITY; ?></label>
<?php [B]//[/B]echo zen_draw_input_field('city', '', zen_set_field_length(TABLE_ADDRESS_BOOK, 'entry_city', '40') . ' id="city"') . (zen_not_null(ENTRY_CITY_TEXT) ? '<span class="alert">' . ENTRY_CITY_TEXT . '</span>': ''); ?>
Notice the red marks were put in place (comment out)
This will remove the CITY field but also leave it there incase you ever want to put it back
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