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NPMIt is posible using dependent fields. The values available in one field depend on the value selected in another field. Help and Training has good information and tips on using field dependencies. The number of potential entries in the fields as you described could run into limitations. For example we needed to have two picklist fields to list all the counties in South Carolina. Depending on the number of the States, Counties, Cities you want to list this could become cumbersome to setup and maintain - not for the faint hearted.