The distinction between the effective size of a population (N e ) and the effective size of its neighborhoods (N n ) has sometimes become blurred. N e reflects the effect of random sampling on the genetic composition of a population of size N, whereas N n is a measure of within-population spatial genetic structure and depends strongly on the dispersal characteristics of a species. Although N n is independent of N e , the reverse is not true. Using simulations of a population of annual plants, it was found that the effect of N n on N e was well approximated by N e = N/(1 − F IS ), where F IS (determined by N n ) was evaluated population wide. N n only had a notable influence of increasing N e as it became smaller (⩽16). In contrast, the effect of N n on genetic estimates of N e was substantial. Using the temporal method (a standard two-sample approach) based on 1000 single-nucleotide polymorphisms (SNPs), and varying sampling method, sample size (2-25% of N) and interval between samples (T = 1-32 generations), estimates of N e ranged from infinity to o0.1% of the true value (defined as N e based on 100% sampling). Estimates were never accurate unless N n and T were large. Three sampling techniques were tested: same-site resampling, different-site resampling and random sampling. Random sampling was the least biased method. Extremely low estimates often resulted when different-site resampling was used, especially when the population was large and the sample fraction was small, raising the possibility that this estimation bias could be a factor determining some very low N e /N that have been published.