Should you be in Drive or Overdrive when driving in the city at typical city speeds?

OD

Unless you are towing something or encountering steep hills (do you live in San Fran?), you should always be in overdrive. The lock-up into overdrive won't occur unless you are going fast enough, anyway, so there is no reason not to keep the gear selector in OD.

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What does Overdrive do in a car?  Is overdrive good for city driving?  Do you drive in the city with od on or off?  Can you drive in the city in 3 in an automatic car?  Is drive more fuel efficient than overdrive in city driving?  Is it economical to leave the overdrive on during city driving?  When driving at normal city limit speeds should you be in drive or overdrive I was told overdrive is this right?