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Place names are made up of elements the words people used to describe a place or their response to their environment.

Place names can consist of a single generic element, usually a noun (Bryn, Talwrn or Dinas), but most place names comprise more than one element with a linguistic relationship between the elements. The generic can be qualified by:
an adjective (Bryn-coch in Powys)
an element defining the location in relation to a river (Brynaman)
an archaeological site (Bryn-celli-ddu)
a building (Bryneglwys in Denbighshire)
a person (Brynsiencyn in Isle of Anglesey)
vegetation (Bryncelyn).

Qualifying elements may, occasionally, precede the generic element (Gwynfryn in Wrexham, SJ2552). It is quite common for the definite article y to precede a place-name (Y Bala, Y Waun, Y Trallwng).

Generic elements can be topographic, referring to features of the landscape; or habitative names, describing the settlement in which people lived (tref, pentref and bod); or qualified by:
personal names (Tremadog, Pentremeurig, Bodorgan)
elements relating to size (Trefechan, Pentre-bach, Bodfach)
elements relating to location (Tre'r-ddl, Pentre-bont, Bodffordd)
elements relating to adjacent building or feature (Trecastell, Pentre'r-felin, Bodysgallen)

Ecclesiastical elements can loosely be described as habitative names, since many are combined with:
personal names, usually of saints (Llandudno, Betws Garmon, Capel Curig)
elements that specify a location (Llan-faes, Betws-y-coed, Capel-y-ffin)

Source: Ordnance Survey: Introduction to Welsh Origins of Place Names in Britain

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