town vs territorial division

town and territorial division both are nouns.

Word	Noun	Adjective	Verb	Adverb
town	Yes	No	No	No
territorial division	Yes	No	No	No

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

Other hypernyms of town include administrative district, administrative division.

town (noun)	territorial division (noun)
the people living in a municipality smaller than a city	a district defined for administrative purposes
an urban area with a fixed boundary that is smaller than a city
an administrative division of a county