By :
I am staying in a small town by Oxford.*
I am staying in a small town near Oxford.
- by = next to or very close to something:
'I've been sitting by the phone all morning waiting for her to ring.'
'I'll meet you on the corner, by the bank.'
- When talking about the position of towns, cities, countries etc, use [near]:
'I spent the first month in a little village called Farchant, near Garmen-Partenkirchen.
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