diff --git a/src/lang/english.txt b/src/lang/english.txt
index 40653e547f..5d67851a2d 100644
--- a/src/lang/english.txt
+++ b/src/lang/english.txt
@@ -5180,12 +5180,13 @@ STR_TOOLBAR_CARGOS_CAPTION                                      :{WHITE}{COMPANY
 STR_TOOLBAR_CARGOS_NAME                                         :{BLACK}{STRING}
 
 #towns
-STR_TOWN_DIRECTORY_TOWN_COLOUR                                  :{ORANGE}{TOWN}{BLACK} ({COMMA}) {YELLOW}{COMMA} {P "house" "houses"}
-STR_TOWN_DIRECTORY_CITY_COLOUR                                  :{YELLOW}{TOWN}{BLACK} ({COMMA}) {YELLOW}{COMMA} {P "house" "houses"}
+STR_TOWN_DIRECTORY_TOWN_COLOUR                                  :{ORANGE}{TOWN}{BLACK} ({COMMA}->{COMMA}) {YELLOW}{COMMA} {P "house" "houses"}
+STR_TOWN_DIRECTORY_CITY_COLOUR                                  :{YELLOW}{TOWN}{BLACK} ({COMMA}->{COMMA}) {YELLOW}{COMMA} {P "house" "houses"}
 STR_OLD_DEPOT_TRAINT_LENGTH                                     :Old depot length format: {STRING2}
 STR_SMALLMAP_TOWN_LARGE                                         :{TINY_FONT}{YELLOW}{TOWN}
 
 STR_SORT_BY_HOUSES                                              :Houses
+STR_SORT_BY_REAL_POPULATION                                     :Real population
 STR_ORDER_DIST                                                  :{NUM}, {NUM}
 
 #server list
diff --git a/src/town_gui.cpp b/src/town_gui.cpp
index 1bef1ab958..4dfb24c417 100644
--- a/src/town_gui.cpp
+++ b/src/town_gui.cpp
@@ -787,6 +787,15 @@ private:
 		return (a_population < b_population) ? -1 : 1;
 	}
 
+	/** Sort by real population (default descending, as big towns are of the most interest). */
+	static int CDECL TownRealPopulationSorter(const Town * const *a, const Town * const *b)
+	{
+		uint32 a_population = (*a)->cache.potential_pop;
+		uint32 b_population = (*b)->cache.potential_pop;
+		if (a_population == b_population) return TownDirectoryWindow::TownNameSorter(a, b);
+		return (a_population < b_population) ? -1 : 1;
+	}
+
 	/** Sort by number of houses (default descending, as big towns are of the most interest). */
 	static int CDECL TownHousesSorter(const Town * const *a, const Town * const *b)
 	{
@@ -893,7 +902,8 @@ public:
 
 					SetDParam(0, t->index);
 					SetDParam(1, t->cache.population);
-					SetDParam(2, t->cache.num_houses);
+					SetDParam(2, t->cache.potential_pop);
+					SetDParam(3, t->cache.num_houses);
 					/* CITIES DIFFERENT COLOUR*/
 					DrawString(text_left, text_right, y + (this->resize.step_height - FONT_HEIGHT_NORMAL) / 2, t->larger_town ? STR_TOWN_DIRECTORY_CITY_COLOUR : STR_TOWN_DIRECTORY_TOWN_COLOUR);
 
@@ -1046,6 +1056,7 @@ const Town *TownDirectoryWindow::last_town = NULL;
 const StringID TownDirectoryWindow::sorter_names[] = {
 	STR_SORT_BY_NAME,
 	STR_SORT_BY_POPULATION,
+	STR_SORT_BY_REAL_POPULATION,
 	STR_SORT_BY_HOUSES,
 	STR_SORT_BY_RATING,
 	INVALID_STRING_ID
@@ -1055,6 +1066,7 @@ const StringID TownDirectoryWindow::sorter_names[] = {
 GUITownList::SortFunction * const TownDirectoryWindow::sorter_funcs[] = {
 	&TownNameSorter,
 	&TownPopulationSorter,
+	&TownRealPopulationSorter,
 	&TownHousesSorter,
 	&TownRatingSorter,
 };