Kahlville is a town located between Fausten and Greendale Halt. It is home to Kahlville Junction, a decently sized railway station and freight yard. It is here where Mrs. C. Ella lives (with her home and office being adjacent to a pair of warehouses), as well as the Fantasyland and Fairytale Railway Traction Company Limited (via the Kahlville Sheds). There is also a large variety of farms within the town, and a massive and well-known engine works. The town's economy is built on its agriculture (especially corn and potatoes) and its machine industry (repairing railway locomotives and older/heavyweight vehicles, along with building new machines and parts for other towns and countries (from the smallest gear to the biggest boiler).
Kahlville Junction is the railway station for the town; it also serves as the primary shunting and goods depot in the town. Within the junction are two main platforms, a station building, an engine shed (usually used by Montana), a freight station with a shunting yard, and a few warehouses along the line. Tillie usually takes charge of shunting here, with Pufle covering as her backup.
- The town's name is derived from animator Milt Kahl, who was described as "tough, but in a gentle way". He is best known for his work on Disney films and characters; characters he directed included Br'er Fox, Shere Khan, Tigger, and Madame Medusa.