People who live close to liquor outlets have higher levels of harmful drinking and worse mental health than those who live further away from such outlets, new research has shown.

The study of almost 7,000 adults over three years found that the average number of standard drinks per day and the rate of harmful alcohol consumption increased for each additional outlet in a neighbourhood.

The likelihood of being treated in hospital for anxiety, stress or depression also increased as the number of alcohol outlets within walking distance increased.

While previous studies have documented the link between alcohol outlet density and injury, crime and violence, this was one of the first studies to show how geographic density of liquor outlets might affect mental health.