Almost all the witches I can recall from literary fiction seem to be either hermits or are rural village/town based. Are there any city witches?
Only when Nanny Ogg and Granny Weatherwax visited Ankh-Morpork to visit the opera. 
Does “Bell Book and Candle” count as literary fiction? I’ve only seen the movie and not read the play, but Gil, Nicky, et. al. are all urban.
Then there’s the Manhattan coven of “Rosemary’s Baby,” but again, is that “literary”?
The Charmed Ones live in downtown San Francisco. I guess that counts as “urban.”
You know, it isn’t absolutely necessary to use a smiley in every single one of your posts.
Point taken. But I tend to be snarky, and I’d just as soon not insult anyone accidentally than have someone object to my shit-eating grin all the time. YMMV.
Besides, I don’t think my previous post counts because the Charmed Ones hardly count as “literary,” which was specified in the OP.
Diana Tregarde is a city living witch written by Mercedes Lackey. She has a variety of other city-living witches as minor characters.
Lynn Abbey wrote Guardians, where the main characters are city living witches, and it’s implied to be fairly common.
IIRC Grandma Addams was a witch.
Glinda the Good lives in the Emerald City, right ?
Vlad Taltos is a witch as well as an assassin, and spends most of his life in the city.
Then of course you’ve got the Witch City.
There is a city witch in the Russian movie Nightwatch (which is one of the best movies I’ve seen this year and is truly awesome.)
I don’t think so. She had her own place. “Witch of the North” and all. Oz lived in the Emerald City. Then Ozma, later on.
Tris
In Equal Rites, Granny and Esk find an old friend of Granny’s living in a town. This friend is quite successful, too, despite some people being opposed to her way of making a living. It’s been too long since I’ve read that book, I need to dig it out and read it again.
Lawrence Watt-Evans’ witches frequently live in town…in fact, I’m not sure that I’ve ever read about any of his witches living in the country. His witches can be male or female.
In the novel With a Single Spell, one of the characters is a witch who’s lived for centuries in an extradimensional castle by herself.