Overview
Traditional settings for company towns were where extractive industries — coal, metal mines, lumber — had established a monopoly franchise. Dam sites and war-industry camps founded other company towns. Since company stores tend to have a monopoly in company towns, it was not uncommon for truck systems to emerge in isolated company towns.
Typically, a company town will be isolated from neighbors and centered (figuratively, if not literally) around a large production factory such as a lumber or steel mill or an automobile plant; and the citizens of the town will either work in the factory, work in one of the smaller businesses, or be a family member of someone who does. The company may also operate parks, host cultural events such as concerts, and so on. If the owning company cuts back or goes out of business, the economic effect on the company town is devastating, and often fatal.
Company towns sometimes become regular public cities and towns as they grow. Other times, a town may not officially be a company town, but it may be a town where the majority of citizens are employed by a single company, thus creating a similar situation to a company town (especially in regard to the town's economy).
Read more about this topic: Company Town