All or virtually all cities and towns have the number of liquor licenses based on a percent of population. Boston is the exception, the state sets the number. This may not make sense now but I'm sure it did in the past. A lot of people on this forum have no idea how bad things were in Boston in the past. During urban renewal the BRA bought a lot of bars and put them out of business. I know there were several on St Botolph St near the Arena that they bought, and I think tore down the building. This was 'before my time' if any one can elaborate. When I moved there in 1977 the bars were gone but it was still a red light district, lots of prostitutes along St Botolph every night, and on occasion in the morning. I was told a pimp had been murdered behind my building a few years earlier.
The current system may not work but I wouldn't be too quick to trust the city either.
I think it was when I was living near Kenmore Sq. in 1980 that I read there were more liquor licenses in that area than any area of Manhattan