In the United States, my recommendation is that you not even try to understand this! The structure of local government is different in every state, and complicated in every state. Most people, including me, don't know and don't need to know. In common parlance in the United States, a "town" just means "a small city." There are no specific definitions. However, a community of less than 100,000 people would probably be called "a town," and one of less than 10,000 would be "a small town." It can also be an affectionate or casual name for a big city. "Lucy was on vacation, but now she is back in town." "Township" is always a technical term. Nobody ever says "I live in a township." In the United States, in most states, there is a unit of organization called a "county," and the counties divide up all of the land in the state. You are either in one county or another. There is no space in between the counties. As far as I know, the same thing is true for "townships." "Town" in some states means "township," in some it is just a name for a kind of municipal corporation. On the other hand, cities, villages, municipalities, etc. may have "unincorporated" space in between them. In Wisconsin, as soon as you are out of Grant County, you are in Iowa County. However, once you leave the "town of Platteville," you drive for miles without being in any "town."