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The London postal districts are organized by sectors, as follows, and then numbered alphabetically within their sectors.
Note that London postal districts rarely coincide with the boundaries of London boroughs (even the old, smaller metropolitan boroughs). The numbering system also appears arbitrary on the map: for example, NW1 is close to central London, but NW2 is a long way out. This is because, within each sector, they were numbered by first assigning the number 1 to the closest district to the centre, and then the rest of the number were assigned alphabetically by the name of the district they represented.
Matters are confused further by the fact that the postal districts considered to be "London" do not correspond to local government boundaries — neither the pre- 1965 London County Council nor the Greater London Council/ Greater London Authority boundaries are identical to the area covered by EC, WC, N, NW, E, W, SE & SW. As a result there are places within Greater London that don't have "London" postcodes (eg, Enfield). Royal Mail has a policy of only changing postcodes if there is an operational advantage to them and have no plans to change the postcode system to match up with London's boundaries.
It is common to use postal districts as placenames in London, particularly in the property market: a property may be described as being "in N11".
There are no London postal districts labelled "NE" or "S". These were in the initial division but were later removed as they were considered unnecessary. These two codes have since been applied to Newcastle Upon Tyne and Sheffield respectively.
All Head District Sorting Offices, except London South East, were connected by and had stations on the Post Office Underground RailwayThe Post Office Railway also known as Mail Rail is a narrow gauge driverless private underground railway in London built by the Post Office to move mail between sorting offices. Inspired by the Chicago Freight Subway, it was in operation from 1927 to 2003.
The postal districts are: