The town is number eight in the north east, jumping up two places from last year, with 319 people watching TV illegally between January and July 2008.
Anyone caught watching TV without a licence risks prosecution and a fine of up to £1,000.
TV Licensing's database of more than 29 million addresses allows it to see which properties are unlicensed at the touch of a button.
Enquiry officers also have access to sophisticated detection equipment, including hi-tech handheld detectors, which were launched a year ago this month.
Charlotte Hancock, TV Licensing spokesperson, said: "No town wants to appear in TV Licensing's league of shame.
"Buying a TV licence is simple and can be done in minutes online, so there's no excuse for licence-dodgers in Wallsend letting the side down.
"TV Licensing's powerful database shows precisely which properties are unlicensed, meaning enquiry officers can target addresses where they suspect people are watching TV illegally.
"But we would much rather people buy a licence than risk prosecution and a fine, which is why we offer a convenient range of ways to pay."
For more information about how to spread the cost of your licence, go to
www.tvlicensing.co.uk/info
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