Compare "xi an" with "xian". One is 2 words and one is 1 word. But for some reason Chinese people don't like to put spaces in between words so "xi an shi" is often written as "xi'anshi" which is different from "xianshi".
It becomes clearer with tones I guess, "Xi1 An1" vs "Xian1". But again, proper pinyin with tones seems to be a foreigner thing... I don't recall seeing tone marks or numbers on street signs.