Highams Park was not mentioned in material promoting business in Waltham Forest on the advice of London School of Economics (LSE) research, the council has said.
There has been outcry after the area, long recognised as a neighbourhood in its own right, was not included in a logo, magazine or website for the launch of the ‘Waltham Forest London’ campaign.
Residents, councillors and business in the area claim it is the latest example of the town hall ignoring Highams Park, where many businesses have closed in recent years.
A council spokeswoman said the areas of Leytonstone, Leyton, Chingford and Walthamstow were chosen on the advice of the LSE Growth Commission report commissioned to recommend how the borough could raise its profile and attract inward investment.
She said: "Highams Park is a very important part of Waltham Forest. Its fantastic housing, sense of community, parks and local high street is a perfect example of why Waltham Forest is such a great place to live.
"The borough identity logo was developed following the Growth Commission report earlier this year which recommended that the council help the borough develop a coherent identity highlighting the four main towns which constituted the boroughs brought together in the 1960s to form Waltham Forest.
"These four distinct areas of Waltham Forest are places well known outside the borough and will help the rest of London begin to understand where the borough is and what it has to offer.
"There are many great areas within the borough like Highams Park, Wood Street and Bakers Arms which have a long history and strong sense of local identity.
"We would encourage businesses and groups from Highams Park to send us information for the new website and we will make sure we highlight the best that the area has to offer."
Meanwhile, it has been revealed that the cost of the launch of the taxpayer-funded campaign was £105,000, which has been allocated until the autumn.