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Thneedville was designed as a utopia town by the Once-ler to further adertise his product after which the place is named (the Thneed), but just as soon as his model was becoming a reality, the last Tuffula tree fell and the Thneed factory closed down. Over time, O'Hare took over the town as mayor, being seen as a hero for selling oxygen (though he had to tighten the security to keep the citizens from finding out they can get fresh air for free just by planting a tree). Everyone (except Audrey and, for her sake, Ted) sees the place as perfect, even though everything, including the "plants", has been manufactured in a factory and bought in a store... they even let some kids swim in the over-clorinated "pond" to the point where one or two of them glow in the dark, proving the locals overlook the pollution right in front of their faces... that is, until the walls came down and everyone (except the impeached O'Hare) decided it was time for a change, and grew a Truffla tree in the park in the middle of town.