The method described in the tutorial is perfectly capable of producing the output you require - there is nothing to prevent the City name appearing as both a heading and in the entries for that city (assuming your data source has a separate field for the City name). The first and second of the DATABASE field approaches can do likewise. If the address and city are in the same field, there's nothing a mailmerge can do to generate the desired output.
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Cheers,
Paul Edstein
[Fmr MS MVP - Word]
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