Terwillegar Towne is one of the seven neighbourhoods within the Terwillegar Heights Servicing Concept Design Brief (SCDB) and is located roughly in the centre of the plan area. The neighbourhood is bounded by 23rd Avenue to the north, Rabbit Hill Road to the east, Terwillegar Boulevard to the south, and Terwillegar Drive to the west.

The neighbourhood began developing in the late 1990s and continued into the 2000s. Residential units in Terwillegar Towne are single- and semi-detached homes, row houses, and apartment-style buildings. Vehicular traffic is dispersed throughout the neighbourhood to eliminate the need for high-volume collector roadways.

Terwillegar Towne represents a unique departure from typical suburban neighbourhood planning. This was the first community in Edmonton to be planned and built on a neo-traditional design model, and it provides an example of New Urbanism-style development within the city. Roadways were constructed so as to encourage pedestrian usage, and houses were situated closer to the street to encourage interaction among residents.

Neighbourhood parks, schools, and a Towne Square provide the focus for the community. The natural environment is incorporated into open spaces throughout the neighbourhood, which includes diverse land uses and a fine-grained approach to mixed-use development. These elements, once dominant in traditional residential communities but lacking in recent suburban development styles, were used as the building blocks of the neo-traditional plan developed for Terwillegar Towne. The result of this planning effort was a walkable, street-oriented community in southwest Edmonton.

Commercial space is provided in the town centre, located along Terwillegar Boulevard on both sides of Towne Centre Boulevard. Two school sites have been provided in Terwillegar Towne, although neither has been developed yet. One site is located adjacent to the town centre east of Towne Centre Boulevard, and the other is located on the western side of the boulevard in roughly the centre of the neighbourhood. The Leger Transit Centre is located on the northern edge of the neighbourhood along 23rd Avenue, which is also where the new Southwest Recreation Centre is located.

Terwillegar Towne was named in honour of Dr. Norman L. Terwillegar (1884–1948). Dr. Terwillegar was a pioneer, a surgeon, and a local property owner in the area for many years. Terwillegar practiced medicine in the Edmonton area between 1912 and 1947 and was on staff at the Royal Alexandra Hospital for over 35 years. He also served as president of the Alberta Division of the Canadian Medical Association, as well as for the Edmonton Academy of Medicine.

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