I thought it was town too. I guess it depends on how you use town. I think of it as something quite rural. I am always confused by the norwegian classifications for towns, villages, etc. Which is a landsby? Which a bygd?
interesting when I went to school in norway (over 25 years ago) I remember having to learn landsby, by, bygd, osv and being confused by which was which.I guess the books were outdated or terms have changed
Yes. We do not use "landsby" about any settlements in Norway, instead we use "bygd". A "bygd" is a geographic area with more or less spread out farms and houses that form a natural or administrative unit.