Land it is easier to make a town on.

 

It really depends. If your really looking into a flat town, water is quite a good option (If you build above it). If you want a flowing town, I suggest on land. If you look hard enough, you might get lucky and find a wavy field which is clear and has minimal inclines/declines which is good for both. Personally unless your building a city, maybe don't have a complete flat town?:)

Goodluck!

 

Personally I will be choosing some land with a bit of hills, I think it looks nicer, and the houses are more of a challenge because of the need to "fit " the house to its surroundings.

 

If you check out my town, Darldon, I built the whole thing floating above the ocean. Having a 200x200 over ocean is great because there is room to change your mind. Over land you will likely end up having to destroy tons of blocks. But everyone I know who has attempted to sponge out a 200x200 has given up. So for sure build over the ocean not in it if that is what you decide! Best of luck with your town. And remember flat towns are usually ugly haha.

 

Placing 40,000 blocks over an ocean is probably cheaper than getting someone to terraform a town (unless its all plains or something). If you need the ocean cleared though, that takes an extremely long period of time and isn't really worth it.

 

I made my town on the ocean, and I regret it (even although I don't use them).

Definitely make it on land.

 

Land: Pros- If you want a Hobbit type of building and no flattening
Cons: Flattening

Water: Pros- Water
Cons: 40k dirt to place

My Choice: LAND

 

I've done all three (drained an ocean, built above an ocean, and built on land). For a flat town building above the ocean is easier than flattening land, but I prefer the flow of the land.

By far the hardest is draining an ocean, I don't recommend bothering unless you really want the flow that is the bottom of the ocean there. Even then it's going to be below all the water surrounding it, making it look weird.