Can I use multiple SSIDs on the same intranet in close proximity?

Can Multiple APs running the same or different channels be used with different SSIDs to create seperate wireless networks on the same intranet?
Example: 4 APs running on the same floor of a small building, 2 APs using SSID named ABC using channels 1 &6. The other 2 APs using SSID named XYZ using channels 1 & 6 or even 6 & 11.
Will this scenario work to create two seperate wireless networks on the same intranet or will this cause problems with all wireless traffic?

For you to understand, the channel is a subdivision of the "physical" medium. The SSID is a logical subdivision that is stacked on the physical medium/frequency/channel.
You can run several "logical" networks (based on different SSID) on one single (physical) channel/frequency. Clients of each "logical" network won't see and won't be able to talk (radio level) with the clients of the other "logical network" /SSID. However, if they operate on the same channel/frequency, they will interfere and your throughput will be affected since they nevertheless share the same (physical) frequency.
It's very similar to the difference between IP addresses and MAC addresses. You may have 2 stations in the same "collision domain" (MAC level; Physical network; subject to collision with each other packets) while they can't speak together without a router because on an IP standpoint they are not in the same subnet (logical network).
So, your solution will work, both networks will be independent at a logical level, but when both 'logical networks" share the same frequency ("collision domain(!)") the throughput will be affected subsequently (all stations of both "logical networks" are operating on the same frequency/channel).
Guy

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