Gather grocery-type bags, two of each size for each building. Provide an assortment of sizes for the preschool town. Decorate one bag of each set. Use colorful markers and crayons to turn each bag into a community building. Draw windows, doors, bricks and signs. Position the bags either horizontally or vertically. Fashion roofs from a rectangular piece of construction paper folded in half and placed on top of the bag, like a gable.
Have the children create the paper bag city with a school, bakery, bank, church, fire station and other community buildings. Add decorative features such as window shutters, chimneys and awnings cut from construction paper. Glue these onto the paper buildings. Add cotton to chimneys as smoke.
Stuff the plain bag with crumpled newspaper. Slip the decorated bag on top to create one building. The building can now stand on its own. Use the same process with each set of bags.
Make trees by coloring cardboard toilet tubes brown. Stuff green tissue paper into the tube tops for foliage. Stand these around and between the buildings in this pretend town.
Guide the children in setting up the town on the floor or on a table. Add small cars, trucks and dolls to make this community look real and ready for pretend play.