Hi SarahAP,
Great question. Employers shouldn't be basing your compensation offer on what you made in previous jobs, but that can and does happen. You can make note in your cover letter that you are attaching a salary history as requested, but your prior earnings are due to lower average salary levels in your previous location. It's better to discuss this issue during face-to-face interviews and only when the employer mentions it. The key is to communicate your value so that employers give you a fair (or generous!) offer.
You should check in with Paul Barada, the negotiations expert on Monster -- here's a link to his message board:
Salary & Negotiation TipsWishing you good luck!