Who lived in the ‘Black Towns’ in cities such as Madras?

Within the new cities, European firms constructed Black Towns.
The “blacks,” or local tradesmen, merchants, artisans (such as weavers), and craftspeople, lived in the “Black Towns,” while the “white” rulers lived in the better residences of Fort St George in Madras or St William in Calcutta.

Final answer:

Hence, the local tradesmen, merchants, artisans (such as weavers), and craftspeople lived in the ‘Black Towns’.