Penny lane, Liverpool The song's title is derived from the name of a street in the band's hometown, Liverpool. The area that surrounds its junction with Smithdown Road is also commonly called Penny Lane. Locally the term "Penny Lane" was the name given to Allerton Road and Smithdown Road and its busy shopping area. Penny Lane is named after James Penny, an 18th century slave trader. McCartney and Lennon grew up in the area and they would meet at Penny Lane junction in the Mossley Hill area to catch a bus into the centre of the city. The street is an important landmark, sought out by most Beatles fans touring Liverpool. In the past, street signs saying "Penny Lane" were constant targets of tourist theft and had to be continually replaced. Eventually, city officials gave up and simply began painting the street name on the sides of buildings.