Location setup

I am currently wanting to allow events being added to Events Manager, to be selected by a set location ie: town, Village, as opposed generic address. I will then be able to show local towns with their events below. As opposed to now it shows towns as I’ve added them as an address, but also all the individual locations. I would like people to select their chosen town, and see events. At present if i add an event i can choose physical or url event. This is fine for displaying the events address, but i want also for a set location to be chosen.

Should I create a new Taxonomy called Town/Village and Create the 12 local towns and villages, and ensure 1 is selected when submitting an event and being created?

Your assistants is much appreciated