market town

Market town is a legal term, originating in the medieval period, for a European settlement that has the right to hold markets. This distinguishes it from a village, usually smaller, than a city. A town may be correctly described as a market town even if it no longer holds a market, provided the right to do so still exists.
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Noun
1. a (usually small) town where a public market is held at stated times
(hypernym) town