/etc/localtime and /etc/timezone
 

What is the difference between these two?

Really can't find any clear explanation under Google and I am able to cat the contents of /etc/timezone, which leads me to believe that is where I set the timezone values, correct?

If that is the case, what is localtime used for?

thanks

Timezone tells your system where you are in the world. i.e. GMT-4 or GMT+2 (depending on your exact location on the planet).

Localtime tells your system exactly what time it is at your location.