I've been told, in the U.S. you don't really say or use the word "village". Even if the place has just some 300 souls living there. So "The village or town..?" may not pass the type-checking :)
Many parts of the United States have municipalities legally incorporated as "villages". Illinois is one example, "the Village of Downers Grove" http://www.downers.us/
Why don't they ask for city/village/town then? Why always ask specifically for a city? Many people don't live in cities. Some don't live in any kind of town or village or anything.