Preventing Town creation in a region via Region Flag - TownyAdvanced/WorldGuard-Towny GitHub Wiki

Preventing town creation in a region is a common issue, to prevent this issue, a town creation region flag is available via this plugin. If you're not familiar with how WorldGuard regions work refer to WorldGuard Region Docs. Once you have a region setup type /rg flags to view the region flags (or alternatively /rg {region_name} flags.

This will give you a list of flags, the town-creation flag will be located on the last page under "Third Party Flags" as shown below:

Screenshot of Flags in region

You have two options allow and deny, trivially this corresponds to allowing town creations or not within a region, once the flag is set the effects should take place immediately.

If you find that using the flag does not work you might not have the required Towny version installed (0.95.2.5 or newer.)