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Midgetville refers to a legend of a small town inhabited by little people. There are a few urban legends of Midgetvilles across America.

The 8 acre Wedderburn Property on the border of the Washington & Old Dominion trail in Vienna, Virginia. Due to the small sizes of the homes, local youth have renamed the place "Midgetville" and tell stories of hostile little people who inhabit the buildings and throw rocks and shoot guns at outsiders. There are no actual Midgets that inhabit the area. In 1882 the site was a small summertime resort that people went to when they wanted to escape the stressful lifestyle of Fairfax County and Washington DC. In 1892 the area was purchased by Alexander Wedderburn. In 1901 the hotel burned to the ground, but a normal sized two story building was built around the same time at the corner of the property. In 1930, one of his sons, George, built six small Spanish-style cottages. A courtyard in the middle of the property was sometimes used as a fairground or a farmers market. The cottages were rented to people, but the place had become overgrown with Ivy and covered with trees. In 2002 the family signed a deal with contractors to tear the place down. The Wedderburns briefly established the Wedderburn Music School on site. As of 2007, the place stands abandoned and ready for construction.

http://www.WeirdUS.com

New Jersey has their own urban legend about a Midgetville in a location called the Jefferson Township. Alfred Ringling, famous for the Ringling Brothers Circus, built a few small-sized houses that had 4 foot doors. Many stories from people who have been there tell of hostile midgets who shoot guns at outsiders.
Weird NJ

• Kentucky on US 42 between Shepardsville and West Point.
• In New Jersey: Morris Plains, Waldwick, Totowa, Singac, and Button Woods.
• California: Corona, Etiwanda, Palm Springs and San Diego. One popular rumor has it that the midgets from Wizard Of Oz went off and built their own community of houses.
• Pasadena, Maryland, just south of Baltimore.
• Ridley Park, Pennsylvania, (or is is it Ridley Township?) across Chester Pike from the Taylor Hospital.
• New Britain, Connecticut, at the end of Long Swamp Road over the highway bridge. A sign outside warns outsiders not to enter. The usual legends of rock-throwing midgets predominate, but there have also been multiple sightings of "an eight-foot-tall man with a red beard," contributing to the legend that "Midgetville" is government land given to circus freaks long ago and established under similar laws as Indian reservations.
• New York- In Oakdale at the end of Idle Hour Blvd.

• A midgetville often mentioned in Edgewater, NJ was actually a summer campsite / bungalow community. No midgets, dwarves, or little people ever inhabited there. Today, it is a private high-end co-op community with a security patrol.
• Another midgetville in Ridley Park, Pennsylvania, behind the Taylor Hospital, actually turned out to be a community of artists in small houses.