City Block, Town District, District
Suffix
ちょうめ
ぼくのかの女は、同じ町の二丁目にすんでいるミイコちゃんです。
My girlfriend Miiko lives in 2-chome too.
その台風で、一丁目と二丁目がしん水してしまいました。
The typhoon flooded both 1-chome and 2-chome.
この桃、三丁目の田中さんから頂いたの。
I got this peach from Tanaka of 3-chome.
A street you can see with your eye isn't soooo big you can't see it (like a town would be), but it's still pretty big because it has a street. This section of the town is the district of a town, or a city block (though specifically one of an irregular size).
The readings are the ones you learned with the kanji, so use those and you'll be A-Okay.