The train network in London is to adopt the Underground's zone layout to simplify the fare structure.
The new system will simplify travel on public transport
The move will pave the way for Oyster smart cards to be rolled out across the railway system from January.
Station-to-station tickets will be scrapped in favour of 21 zone-to-zone combinations, the government said.
Brian Cooke, of travel watchdog London TravelWatch, said the overhaul will make travelling on different types of transport much easier.
There are more than 330 railway stations within the Underground and Travelcard zones.
At present, each 97,300 different station-to-station combinations has its own set of fares.
These will be replaced by just 21 zone-to-zone combinations, with a single, return and cheap day return set for each.
Rail Minister Tom Harris said: "The new system is simple and sensible.
"It will make train fares in different parts of London consistent with each other and will use the zones that travellers are already familiar with."
Mr Cooke, TravelWatch chairman, said the new system would see some passengers paying more for their ticket than they do at present.
"But these people are the minority, and have, in the main, hitherto been benefiting from relatively cheap tickets in comparison with others.
"It is only fair that all people pay the same for similar journeys. Many journeys, especially those across London, will be much cheaper under the new zonal scheme."