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Depending on the number of inhabitants, human settlements are usually classified as cities, towns or villages. Cities are generally larger and more densely populated than towns and have industrial, commercial and residential areas. Most cities also perform administrative functions. A town in smaller than a city but larger than village, it has smaller areas as a market, commercial and administrative hubs for the surrounding countryside and villages. Their population is generally smaller than the cities.

Location and history of a place also plays a part in it being designated as a City or a Town.
In densely populated countries like India and China,many towns are larger than the state and national capitals of many sparsely populated countries.Villages are small rural settlements largely dependent on agriculture, tourism or a specialized skill.

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