I like the old name Aguas Calientes better, but calling the town Machu Picchu Pueblo makes it clear it's definitely a tourist town—hotels, restaurants, shops—but also that it's a place that only exists as a waystation to Machu Picchu. There are no cars in town, only the buses that go up the mountain. And since you're only allowed to bring one carry-on sized piece of luggage on the train in, nobody is staying for long. (Many people actually do Machu Picchu as a day trip from Cusco.)
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