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What is a phenomenon characterized by poorly planned development on the edges of cities and towns.

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They're most likely referring to urban sprawl, which is usually associated with rapid, less thoughtfully planned development.

It's usually thought of in a negative light, because the neighborhoods that develop lack the amenities, infrastructure, and/or identity of traditional neighborhoods. And because they're on the edges of cities, everyone usually relies on cars, which leads to traffic jams, pollution, and a lack of sense of community.
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