Yeah, that is similar but different from what she was talking about. She talked about one place that they built on a wetlands, then when that local economy was dead, they tore it down and made a lake. This lake then became prime property and this then drew economic growth.
I don't know enough about Tanasbourne other than what I read on wiki.
I think the key points I took away from her point was to develop along rail lines, and build more townhouses like you mentioned.