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Steve,

> you cant have two towns in the same zip code?

Yes you can.  And in fact a (very) few even cross state boundaries. 
The zip codes were never intended as political or geographic
boundaries -- they are simply for efficiency in delivering mail. 
(About 10% of them cross county lines, for example.)

And while the number of 5-digit zips remains in the neighborhood of
43000 or so, allegedly there are an average of over 25000 changes *per
month* by the USPS in zip codes / boundaries due to changing postal
requirements.

I believe each 5-digit zip has a "primary" city, but when you include
the variations on town names within them you have more like 76K
records instead of 43K (in general numbers).

Google for more information.  Here is but one of many FAQ's on it:
http://www.carrierroutes.com/ZIPCodes.html

Doug


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