town vs townspeople

town and townspeople both are nouns.

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

As nouns, town and townspeople are synonyms defined as:

town and townspeople: the people living in a municipality smaller than a city

Other synonyms of town include townsfolk.

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