Is there any way to achieve the following scenario

In cck form contain 2 field
1) city as a term reference
2) the next text box is term reference autocomplete (user can add terms on the fly)

User select LA in city and he/she is adding a term called Test1 and click save node, then the term will be created, next time when i select same city i should see Test1 term but when i choose some other city the Test1 term should not come.

Can any one guide me how to achieve this scenario?