Players will sometimes find that the movement of troops results in the tabletop becoming quite crowded, especially when several different units are engaged in close combat fighting. It is obviously important to establish what units are actually fighting and which are close by but not engaged, eg, perhaps merely passing by.
For this reason, opposing troops are kept at least 1" apart when they are not fighting. Models which would otherwise approach to within 1" of an enemy without engaging them are simply halted 1" away. Remember that units may only engage in close combat by means of a charge, except in exceptional circumstances. These are clearly indicated in the rules.
This rule is ignored during charge moves - a charging unit may approach within 1" of any enemy. This is done for the purposes of game mechanics.