Town privileges are rules that a town or city is allowed to make for itself.
Imagine you and your friends are playing a game together. You might make some rules to make sure everyone is playing fairly and having fun, like "no cheating" or "take turns". Town privileges are kind of like those rules, but for a whole town or city!
When a town is given "privileges", that means it can make rules for itself that are different from rules in other towns. These rules might be about things like who can live in the town, or what kind of businesses are allowed.
Sometimes, towns were given privileges by a king or queen in the past, as a way to make the town more important or special. Other times, towns might have gained privileges over time, as they grew bigger and more powerful.
Nowadays, different countries have different rules about town privileges. In some places, towns are allowed to make a lot of their own decisions, while in others, they have to follow strict rules set by the government. But no matter what, town privileges are all about giving a town some independence and control over its own destiny.