Speaking to Journalism.co.uk, Blog Preston founder Ed Walker said the team behind the site were "chuffed".
"There are probably more deserving winners but I think we have really expanded our coverage in the last year, particularly our live coverage of the EDL protests and our general election coverage.
"It is great, particularly for all our contributors, to be recognised in that way".
Other winners included Philip John of the Lichfield Blog for Best Media Empire and Saddleworth News for Hottest Story.
Hannah Waldram, beat blogger for Guardian Local Cardiff, was given the Un-Award for "Sprinkling fairy dust in an urban area".
Last year's winner of both best overall site and hyperlocal story prizes Isle of Wight-based site the VentnorBlog was awarded for Best Forensic Reporting for its live coverage of council voting.
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