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# Territorial Support Limitation

## Definition

The natural constraint on urban growth imposed by the productive capacity of surrounding territory, where towns cannot expand beyond what local agricultural improvement can sustain. This limitation reflects the fundamental dependence of urban populations on rural surplus production and determines the maximum size of market towns in any region.

## Source Chapter

Book III, Chapter 1

## Context

Smith identifies this as the key factor limiting urban development in natural economic systems, explaining why towns remain small until surrounding lands are fully cultivated and why territorial capacity determines the scale of possible urban development.

## Economic Domain

Production

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