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Urban sustainability indicators play an important role in helping policy‐makers ensure the continued success of their cities. However, a review of current practice suggests that priority is often given to the measurability and policy relevance of these metrics. Their analytical validity – i.e. their ability to act as meaningful representations of the urban system and thus inform appropriate policy responses – is less certain. An examination of London's USIs confirms this gap between theory and practice and identifies vague definitions of urban sustainability as part of the problem. A ‘service niche’ approach to indicator selection is therefore outlined, using pervasive goal‐oriented urban services such as energy or water systems to guide the selection of policy‐relevant interconnected metrics. Strategies for expanding such niches to wider assessments of urban sustainability are also discussed. Copyright © 2007 John Wiley & …