Probably because you can live in towns and villages, but you can't live IN hills or mountains.
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AnonymousThe first 3 sentences are correct, provided they appear in the proper context. But note that they can also be correct with the definite article in front of the words towns, villages, towns, and big cities, if they appear in the right context.The second 2 sentences are ungrammatical in isolation, however, they can be okay in a particular context, for example:These