Diagon Alley was a shopping street filled with shops and dwellings specifically meant for the magical crowd. It was only accessible to wizards and witches and muggles couldn't even see the entrance to Diagon Alley unless they were relatives of a witch or wizard. It was situated very close to London. However, Hogsmeade was located in Scotland, near the Scottish Highlands. It was an all-wizarding village which also had shops but was primarily a place where a lot of wizarding families stayed as well.