--- a/src/industry_cmd.cpp	Sat Nov 10 23:22:32 2007 +0000
+++ b/src/industry_cmd.cpp	Sun Nov 11 00:04:52 2007 +0000
@@ -1233,7 +1233,7 @@
 				refused_slope |= IsSlopeRefused(tileh, its->slopes_refused);
 			}
 
-			if (ind_behav & INDUSTRYBEH_ONLY_INTOWN) {
+			if (ind_behav & (INDUSTRYBEH_ONLY_INTOWN | INDUSTRYBEH_TOWN1200_MORE)) {
 				if (!IsTileType(cur_tile, MP_HOUSE)) {
 					_error_message = STR_029D_CAN_ONLY_BE_BUILT_IN_TOWNS;
 					return false;