This paper investigates the spatial dimension of overeducation and its incidence on local labour markets. Spatial Durbin panel models, using both static and dynamic specifications, are run on French employment areas between 2009 and 2017. I find that the lack of job opportunities affects overeducation both locally in the neighbouring areas. I also find that the geography of local labour markets does not have the same impact on educational mismatch for all workers, with young workers being less affected by the situation in other areas. Finally, I find that overeducation is related to opportunities in rural areas, and to competition in urban areas.