When an area of land is limited in size or population, there may be people or leaders who will try to build it up. They would want a stronger economy. One way to do this is to inspire and motivate people to want to come to these areas. Creating more transportation would allow for more people to visit and stay. The Shinkansen is the bullet train in Japan.
This would be one way to promote the town. Allowing for terrace farming in mountainous terrains where the land makes it difficult for farming on flat land, this would help farmers to move to land that has not worn out or eroded. Due to limited space or large populations, several countries have capsule hotels where people live in a pod.