Duncan, Canada

The population of just under 5,000 makes Duncan the smallest city in Canada by area, but don't let the quaint size fool you - this sleepy Vancouver Island outpost has its fair share of bureaucratic headaches. While the idyllic Cowichan Valley setting and collection of totem poles may attract tourists, the long-shuttered rail line and ongoing softwood lumber dispute have left the local economy in a state of flux. And with a religious makeup dominated by the irreligious, newcomers seeking a devout community will likely be disappointed. Overall, Duncan is best suited for those seeking a quiet, coastal lifestyle, provided they can navigate the region's persistent bureaucratic challenges.