Weird!
I just googled it:
It means the buildings are less than 200 feet apart on average. Unless otherwise posted, the speed limit is 30 miles per hour. [1]
Footnotes
[1] Nowhere but New England.
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Funny that is has to do with speed limit & the distance between buildings. Cause why put up a sign that says 30mph when you can just say thickly settled? 😂🤣😁