London is the oldest town of / in England.
Which is the correct preposition to use here ? My book says In but why of is wrong here ? Reading the sentence both sound correct.
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London is the oldest town in England.
is correct since the town's location is within England.
town of England.
might be understood to mean a town full of England, which is not possible since England is much bigger than a town, or they might think you are saying "town of English" in the same way that
a bucket of water
is a bucket full of water.
The other error in your sentence is factual
Colchester is the oldest town in England.