A subdivision in the United States is a residential area composed mostly of detached dwellings, probably constructed by one developer. A developer buys raw land, arranges for installation of infrastructure (streets, utilities, etc.), and then sells individual lots to house builders.There could be strict zoning laws that prevent certain kinds of commercial activities within the subdivision. A village, on the other hand, is a small town, usually with its own municipal government, which a subdivision does not have. A subdivision is only part of a city or town.