City, Town, and Village–What’s the Difference? A village is a small community in a rural area. A town is a populated area with fixed boundaries and a local government. A city is a large or important town.Click to see full answer. Similarly, you may ask, what is the similarities between village and city?There are several differences between a village and a city. In the city, they have a lot of buildings and markets. However, in the village they have little houses and small markets. People who live in the village have farms but, in the city, they don’t have farms.Additionally, how is a small village different from a big village? Villages have smaller land areas than towns since towns are actually villages that have expanded or extended annexing nearby villages. And because they have a larger land area than villages, it follows that towns have larger populations than villages. Public libraries and hospitals are also located in towns. Also to know is, what defines a village from a town? A village is a small settlement usually found in a rural setting. It is generally larger than a “hamlet” but smaller than a “town”. Some geographers specifically define a village as having between 500 and 2,500 inhabitants. In most parts of the world, villages are settlements of people clustered around a central point.How are villages and towns interdependent?Both villages and cities are interdependent. The people of cities need food which is produced in villages while as people in villages need fertilizers, pesticides and agricultural implements which are produced mostly in cities or with the money earned by the people in cities.