The name Pennydale was introduced officially when a post office was established in the Bay Road East shopping centre on 3 March 1956. The Post office – located at 360 Bay Road - was opened by the Post Master General as a means of avoiding confusion in deliveries between the Cheltenham and the Highett Post Offices. The official postal address at that time was "Pennydale S22". When the system changed to using Post Codes, Pennydale used the same Post Code as Cheltenham being 3192. On 27 October 1993 the Post Office became a Licensed Post Office and it ran as such until it closed down on 25 August 1999. The reason for the closure was that a new post office had opened within the Southland Shopping Centre and it was deemed that the Pennydale Post Office was no longer required. Following the closure of the post office, many residents have continued using the name since that time, and letters addressed to Pennydale 3192 are still being delivered even today.