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I’m building a web based application to determine a value, which consists the calculation of the distance between X city to Y city (US).
Is there a data resource to pull that information?
You can get the latitude and longitude of your cities from a map API. I use Yahoo’s because their terms of service fit better with my needs, but the Google API is certainly a good choice as well.
The Yahoo API is described here
http://developer.yahoo.com/geo/placefinder/
Once you have the latitude and longitude, you can find the distance either using a fairly straightforward formula
Calculate distance between two latitude-longitude points? (Haversine formula)
or with another API:
http://developer.yahoo.com/flash/maps/classreference/com/yahoo/maps/api/utils/Distance.html