Towns are the only source of passengers [[File:icon passengers.png|16px]] in the game and the main source for generating Money Tokens [[File:token money.png|16px]] in the game.  Towns are generated in random locations on the map at the start of the game, new towns will also appear during the transition between two eras. The size and number of towns generated intially depends on the preset for New Game ( [[Game Settings|Game Settings]] ).

For town to grow, the City Town Square '''must be connected to the road'''. If you surround the city square Town Square by other structures without a single piece of road, the town will not grow no matter what. The size of the town increases once the number of passengers that have arrived at the town has reached a certain number. Smaller towns require less passengers to arrive than larger towns, the number of passengers required increases exponentially, making it harder to grow towns beyond a certain size. In the advanced eras, the towns grow also by delivering Goods and Food to appropriate stores.

The size and shape of a town can be influenced by building a road network around the town; new and by using the [[City Upgrades#Constr|'''Construction''']] upgrades. New buildings will tend to appear next to roads. If no extra roads are built by the player, roads will randomly generate for new houses to be built on as the town increases in size.

Each building in a town has two processes that are activated once the building is within the catchment area of a nearby station. The first process takes passengers [[File:icon passengers.png|16px]] that have arrived at a the station from a different town towns and exchanges them for Money Tokens [[File:token money.png|16px]]. This process occurs instantly as the passengers disembark and is independent of the nubmer of buildins in the town. The tokens [[File:token money.png|16px]] are calculated in the rate of 1 [[File:token money.png|16px]] per 1 [[File:icon passengers.png|16px]] per 80 squares traveled.  The second process produces a single passenger passengers [[File:icon passengers.png|16px]] after a set number of [[Game tick|game ticks]]. Once the passenger appears, they are moved to the nearby station where they will wait for the next passenger train or bus to arrive. The number of [[Game tick|game ticks]] is individual for each house and remains constant. However; the number of passengers changes with the house level. House level depends on presence of different [[City Upgrades|'''City Extensions''']] (see that wiki page for more details).