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An overview of geocoding

Release 9.1
Last modified January 18, 2008
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Geocoding is the process of assigning a location, usually in the form of coordinate values (points), to an address by comparing the descriptive location elements in the address to those present in the reference material. Addresses come in many forms, ranging from the common address format of house number followed by the street name and succeeding information to other location descriptions, such as postal zone or census tract. An address includes any type of information that distinguishes a place.
From simple data analysis to business and customer management to distribution techniques, there is a wide range of applications for which geocoding can be used. With geocoded addresses, you can spatially display the address locations and recognize patterns within the information. This can be done by simply looking at the information or using some of the analysis tools available with ArcGIS. You can also display your address information based on certain parameters, allowing you to further analyze the information.
Your first step when you want to find something on a map is to have the right map. There is no way you will find your way to 380 New York Street in Redlands, California, if you only have a map of Canada. Also, you won't be able to pinpoint the address very well if your map only shows highways and major cities. Your map needs to have enough detail of the area to pinpoint the location for which you are searching.
It is no different when geocoding in ArcGIS. The layers that you use, known as reference data, need to have details of the specific point you are hoping to find. When looking for addresses, the primary reference data usually consists of a street network, but a parcel map can also be used as well. The important thing is that the data has the detail that you want to find.

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