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The independence of Kauniainen as a municipality was threatened by the municipal obligations and the small number of inhabitants.
In the 1950s the market town tried to incorporate a few surrounding areas from Espoo, but the application was rejected in 1953.
Instead the area of Kasavuori, which the market town had bought, was incorporated in 1957.
Otto-Iivari Meurman was given the task of making a new town plan.
He suggested that the villa milieu would be kept, but that the number of inhabitants would be significantly raised, from 2, 500 to 10, 000, and that the unmodern villas would be replaced by new ones.
Also apartment buildings should be built.
A new commercial centre was planned next to the railway station with Vällingby in Stockholm as a model.
The plans for Kasavuori were approved in 1959 and for the rest of the market town in 1961 and 1963.
The commercial centre was inaugurated in 1966.
The town plan has later been criticised because the unique villa environment was disrupted and many of the beautiful villas were demolished.
A skiing centre was planned in Kasavuori of the same type as Holmenkollen in Oslo, but the plans were never realised.
Today this area is protected.

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