town: [OE] The ancestral meaning of town is ‘enclosed place’ – amongst its relatives are German zaun ‘hedge, fence’ and Old Irish dūn ‘fort, camp, fortified place’. Its Old English forerunner tūn was used for an ‘enclosure’ or ‘yard’, and also for a ‘building or set of buildings within an enclosure’, hence a ‘farm’. This in due course evolved to a ‘cluster of dwellings’, and by the 12th century the modern English sense of the word was in place (the standard Old English term for ‘town’ was burg, ancestor of modern English borough).
The -ton ending of English place-names goes back in many cases to a time when the word meant ‘farmstead’. [town etymology, town origin, 英语词源]