The reference implementation of DX Town is the game Double Crossing.
The player is riding a DMT high-speed train and can create a character of any of several playable races. The story starts with the train wrecking (they don't call DMT "Disaster" for nothing) and the player's character waking up in a hospital. It is explained that the train going home has wrecked, and the player is stuck in this town.
DX was originally conceived in 2007, when one of the most popular platforms for handheld indie gaming was a Nintendo DS with a SLOT-2 CF or SD adapter. It was originally designed to let the player import character data from Animal Crossing: Wild World in much the same way that Animal Crossing: City Folk could, ending up with a human character with the same catalog and some of the same possessions. The DS version would scan SLOT-1 for an ACWW Game Card or scan libfat's file system for .sav files from ACWW. The PC version would import ACWW .sav files or listen for SavSender requests.
|Behind the scenes information|
DMT is a shout-out to the enclosed roller coaster Disaster Transport at Cedar Point, which in the ride's universe originated as a detractor nickname for a high-speed passenger and freight rail company called Dispatch Master Transport. The Disaster Transport ride is supposed to be a simulation of a futuristic high-speed rail ride. But according to this Cracked article, the concept of a high-speed train as an amusement park ride began with Mauch Chunk Railway.