--- a/src/industry_cmd.cpp	Sun Dec 09 22:14:41 2007 +0000
+++ b/src/industry_cmd.cpp	Mon Dec 10 17:26:49 2007 +0000
@@ -1236,7 +1236,7 @@
 				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_030D_CAN_ONLY_BE_BUILT_IN_TOWNS;
 					return false;