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Could you please share a bit more about your scenario?
How do you retrieve the Cities and States value from your data source?
I suppose that you have recognized that you may face a Delegation issue with the LookUp formula you used within you app, is it true?
If the Data source you used is a Delegable data source, and the LookUp formula you used is also Delegated within your app, you don't need to care about the Delegation issue.
More details about the Delegation in PowerApps, please check the following article:
If the Data source you used is not a Delegable data source, or the formula you used could not be delegated within your app, you could not delegate the data processing to your data source, instead of, you could only process your data locally. In addition, you could only process 500 records at most in default (you could consider change the Non-delegable limits to maximum value -- 2000).
So please make sure your Data source is a Delegable data source, and you use a Delegated formula within your app based on the following article: