Octopus City Loop: The instrument you use in the melody in the second phrase reminds me of the water levels in Super Mario Odyssey and gives this a watery vibe for sure. Your octopus city sounds so peaceful - I feel that I could float in this city listening to this tune for a long time all the while feeling very content. I think that using three separate instruments in the melody is a very good choice you made to make this short loop not feel stagnant and to keep it moving forward with lots of replayability.

Did I imagine the town?: I think so! If this were in a game about an octopus, I think this would work very well as a home town theme before they set out on their adventure. Great work and thank you for sharing!

I don't know if it's the choose of synth and rhythm , but it gave me the feeling of floating around the sea! Really calming, could probably be used in any setting.

I enjoyed listening to this. I did feel an underwater vibe for sure, but I also felt like the town was very magical at the same time.  I pictured me playing an RPG and me exploring the town; running by wizards, but the town was underwater and hidden away by magic. 

Very nice melody !

I agree with RavenBlueIndigo and TheSlowly. I think it's because of the choice of the instruments on the second part. For me woodwinds (clarinet and flute) sound aerial. It's hard to play flute underwater :D

To correct that, maybe if you put reverb on those instruments it could sound more distant like the sounds underwater. I hope I'm clear...
About the composition, I like the 3/4 metric very clear at the beginning. I find this part waterish (like the water worlds in Super Mario Bros).

Nice work!

A peaceful and relaxing track. If I had to give any criticisms, it would be very similar to Snowly's.

The song gives me strong pastoral vibes rather than an urban/metropolitan vibe, although, as you stated, you're using the word interchangeably.

Also, I struggle to imagine this as an underwater theme. I can, but my mind keeps defaulting to, like, a beautiful, sunny village on a plain.

At any rate, you did well on the track~

That's really cool! A nice heartwarming piece and neatly done! It's super effective even with simple and few instruments!

Also speaking of few instruments, It has that first town feeling and I love that.

However I feel that it works more for Sunset Town than Octopus City,  first by the fact that the word "city" imply a more complex song, and urban. But that's nitpicking, great song!