Your license, not your drive time, sets the edge of the campaign
The first decision in a Louisville plumbing account is which state the ads are allowed to run in, and it is a legal question before it is a marketing one.
Set location targeting to people physically present in your service area, not to people interested in it. The looser setting is the default in some accounts and it buys clicks from anywhere.
If you are licensed in Kentucky only, the Indiana side is not an upside to test. Exclude Clark and Floyd counties, and add the city names as negative keywords too, because someone sitting in Louisville will search for a plumber in Jeffersonville for a rental they own.
If you are licensed on both sides, run them as separate campaigns with separate budgets and separate landing pages. Southern Indiana searchers respond to being named. A campaign that says New Albany and Clarksville out loud does better than one that says Louisville and hopes.
Requirements for licensing and registration differ between the two states and are worth confirming with your own counsel before a dollar of budget crosses the river.