In theory, yes, it could work.
The problem I suspect, would be the addition of actual people into the system.
I think the size of such a town would be very limited, based on the average person's idea of how far one can travel under one's own power. WE know you can ride two or three or four miles, but a lot of people regard it as impossible.
The other thing that I wonder about is goods transport, Yes, you can distribute by human power up to a point (we have a great courier service doing that in York), but when you are talking about whole pallets to shops, etc it gets harder. It can be done, but it means a town standing alone within a system, if you see what I mean. The hubs would have to do a lot of unpacking and repacking etc...