It looks like a pretty good start! I would say that it feels a bit linear for a town-it feels more like a route with houses on it instead. That's not necessarily a bad thing-it'd certainly make it stand out from the standard small towns-but you might want to flesh it out if you wanted it to just be a regular town. (there's also what looks like a bench that didn't get erased all the way-it's kinda in the middle of the image)
Nice work with the decorations. They look nice and natural without leaving "boring" empty spaces. I really like the lake park area and the garden of the houses.
You might want to add something more interesting to the path in the bottom with the bench or maybe shift the house and the entrance of the town to the right.
Also if it's a starter town make sure the player doesn't get lost since there are 4 exits.
Fotia Village, location of Mt. Fotia and the Mt. Fotia Seismology Center.
Being situated next to a volcano means that not a whole lot of people want to live in the area. Most of the people who live there either work at the Seismology Center, or are family members of those that do. Despite that however, they do tend to get a fair bit of foot traffic because within Mt. Fotia is the path to the fourth gym of the Yitria Region, where the thrill-seeker Lindsey awaits with her team of Fire Pokemon.
Here's what the original map looked like when I first made it about ten years ago. While I do like the design better now, I think I may incorperate elements from the original map into this. Primarily the houses and the different colored cliff tiles. It'll mean a little extra work, but I think in the long run it'll make the map pop out a bit more. All the revisions I wanted to make were done relatively quickly (aside from replacing the tiles with the proper volcano tiles. That was a doozy.)
That looks like a great start! I like the rock decorations you've added to the volcano-even though the original had a cool steepness effect to it, I think the more free-flowing version you have here makes it feel more like a natural formation!
I think one thing I would suggest is to try to create a more clear footpath. It makes sense that, as you approach the volcano, the ground would be less green, but since you're also using that same tile on the footpath for the route, it makes things a little confusing. Like, I kept thinking that the trees in the lower left corner were blocking a path, because having the brown as the walking path made me think that brown=place for players to walk, rather than just brown=dirt/soil/etc. What if you tried the light-green grass tiles on the route instead? That way, you could introduce the brown titles as just decoration, and the player won't get confused and think they indicate where to go.
I'd also suggest removing these two trees right here:
Just because it looks like they would force the player to go the long way to get to the next house. (Like, if I exited the house on the left and I wanted to go to the house on the right, I couldn't just go right, I'd have to walk around the house and go right) It's minor, but it's not really serving any purpose as an obstacle.
I separated the path into the town and the decorative dirt, but I may change the dirt used entering the town to something else (or the dirt surrounding the volcano, but that'll be a messy, messy job). I also took the advice and removed the trees next to that house.
I might be running into the end of what all I can do to the map to polish it up. Maybe a few more tweaks here and there to make a little more stand out, but beyond that I think it's fair to say the map is roughly as good as it'll get.
Cutting off the path was a good solution! The only place that still blurs the line between path and decoration is that lower left corner-and I think that path behind the trees might be for an item? In that case, blurring the line makes perfect sense for it!