The Collaborative International Dictionary of English v.0.48:

Townspeople \Towns"peo`ple\, n.
   The inhabitants of a town or city, especially in distinction
   from country people; townsfolk.
   [1913 Webster] Townward

WordNet (r) 3.0 (2006):

townspeople
    n 1: the people living in a municipality smaller than a city;
         "the whole town cheered the team" [syn: town,
         townspeople, townsfolk]

Moby Thesaurus II by Grady Ward, 1.0:

19 Moby Thesaurus words for "townspeople":
   big-city man, bourgeois, burgess, burgher, city dweller, city man,
   city slicker, exurbanite, oppidan, suburbanite, townee, towner,
   townfolk, townfolks, townsman, townswoman, urbanite, villager,
   villageress