Let bindings are in effect only in the block of code in which they occur. This is exactly what you're used to from nearly any modern programming language. For example:

let x=42 in 
  (* y is not meaningful here *)  
  x + (let y="3110" in
         (* y is meaningful here *)
         int_of_string y)

The scope of a variable is where its name is meaningful. Variable y is in scope only inside of the let expression that binds it above.

It's possible to have overlapping bindings of the same name. For example:

let x = 5 in 
  ((let x = 6 in x) + x)

But this is darn confusing, and for that reason, it is strongly discouraged style—much like ambiguous pronouns are discouraged in natural language. Nonetheless, let's consider what that code means.

To what value does that code evaluate? The answer comes down to how x is replaced by a value each time it occurs. Here are a few possibilities for such substitution:

(* possibility 1 *)
let x = 5 in 
  ((let x = 6 in 6) + 5)

(* possibility 2 *)
let x = 5 in 
  ((let x = 6 in 5) + 5)

(* possibility 3 *)
let x = 5 in 
  ((let x = 6 in 6) + 6)

The first one is what nearly any reasonable language would do. And most likely it's what you would guess But, why?

The answer is something we'll call the Principle of Name Irrelevance: the name of a variable shouldn't intrinsically matter. You're used to this from math. For example, the following two functions are the same:

f(x)=x2 f(x) = x^2

f(y)=y2 f(y) = y^2

It doesn't intrinsically matter whether we call the argument to the function xx or yy; either way, it's still the squaring function. Therefore, in programs, these two functions should be identical:

let f x = x*x
let f y = y*y

This principle is more commonly known as alpha equivalence: the two functions are equivalent up to renaming of variables, which is also called alpha conversion for historical reasons that are unimportant here.

According to the Principle of Name Irrelevance, these two expressions should be identical:

let x = 6 in x
let y = 6 in y

Therefore, the following two expressions, which have the above expressions embedded in them, should also be identical:

let x = 5 in (let x = 6 in x) + x
let x = 5 in (let y = 6 in y) + x

But for those to be identical, we must choose the first of the three possibilities above. It is the only one that makes the name of the variable be irrelevant.

There is a term commonly used for this phenomenon: a new binding of a variable shadows any old binding of the variable name. Metaphorically, it's as if the new binding temporarily casts a shadow over the old binding. But eventually the old binding could reappear as the shadow recedes.

Shadowing is not mutable assignment. For example, both of the following expressions evaluate to 11:

let x = 5 in ((let x = 6 in x) + x)
let x = 5 in (x + (let x = 6 in x))

Likewise, the following utop transcript is not mutable assignment, though at first it could seem like it is:

# let x = 42;;
val x : int = 42
# let x = 22;;
val x : int = 22

Recall that every let definition in the toplevel is effectively a nested let expression. So the above is effectively the following:

let x = 42 in
  let x = 22 in 
    ... (* whatever else is typed in the toplevel *)

The right way to think about this is that the second let binds an entirely new variable that just happens to have the same name as the first let.

Here is another utop transcript that is well worth studying:

# let x=42;;
val x : int = 42
# let f y = x+y;;
val f : int -> int = <fun>
# f 0;;
: int = 42
# let x=22;;
val x : int = 22
# f 0;;
- : int = 42  (* x did not mutate! *)

To summarize, each let definition binds an entirely new variable. If that new variable happens to have the same name as an old variable, the new variable temporarily shadows the old one. But the old variable is still around, and its value is immutable: it never, ever changes. So even though let expressions might superficially look like assignment statements from imperative languages, they are actually quite different.

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