town vs municipality

town and municipality both are nouns.

Word	Noun	Adjective	Verb	Adverb
town	Yes	No	No	No
municipality	Yes	No	No	No

As nouns, municipality is a hypernym of town; that is, municipality is a word with a broader meaning than town:

As nouns, municipality is a hypernym of town; that is, municipality is a word with a broader meaning than town:

town: an urban area with a fixed boundary that is smaller than a city
municipality: an urban district having corporate status and powers of self-government

town (noun)	municipality (noun)
the people living in a municipality smaller than a city	people living in a town or city having local self-government
an urban area with a fixed boundary that is smaller than a city	an urban district having corporate status and powers of self-government
an administrative division of a county