That's because the City of London is a city within the greater London. The city's boundaries have remained almost unchanged since the Middle Ages hence why it is so small.
It was founded by the Romans in 47 AD and today, only covers only 1.12 square miles. "The City" (as it is referred to by locals) is a major financial center - the world's leading financial center in fact. Nearly 300,000 people commute to and work in the City.
Interestingly, the City controls the famed London Bridge but only half of the river beneath it. The boundaries are marked by black bollards bearing the City's emblem.
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