Often, in the process of writing for fantasy, we need to create little towns and villages. I feel like these are rarely practical or realistic creations. But why not? There are so many resources to draw from. Let's look at some little villages, particularly old ones, and see what they look like.
This is a village so iconic it inspired one of the first horror / sci-fi novels. There is a creepy-ass castle over-looking a tiny village that winds along a little river in a deep valley cut through the mountains: