Toronto

IP addresses do not map to physical addresses. However the are ways for companies to make educated guesses about your physical location based on your IP address. Sometimes this will allow the company to place the IP address in a zipcode, sometimes in the correct city, sometimes in the correct state, sometimes only in the correct country.

Your ISP does not directly disclose who the IP address is assigned to. For high speed internet it is common for the ISP to continually give you the same IP address. Since you are assigned the same IP address other internet companies such as advertisers can locate you by what websites you go to. For example if you lookup weather conditions for your town you have just disclosed that you are likely in that town. Read a couple local online newspaper articles and visit a local TV station's website and you have further increased the likelihood that you live in that town.

This all gets thrown out the window when it comes to mobile devices. When connected to my mobile provider network the IP address lookup service believes that I am in a town some 400 miles (640 km) away in a different state.

The main point is that IP address lookup can be wildly inaccurate as networks that shuffle IP addresses around.