difference between townspeople and townpeople

Is it correct to say townspeople or townpeople?

Ive always heard it said townspeople. -----------ooooooo--------- It's a contraction of a town's people; the people of the town

Townspeople VS town's people?

(what's the difference in meaning if any? give examples with explanation)

• There is no difference, aside from the space between the two words.

•  I would use both, but differently.
  
  Townspeople - people that live in towns generally.
  An example of usage:
  Townspeople know less about countryside issues than the people actually living in the rural areas.
  
  Town's people - people that live in a specific town e.g.Northampton - "the" town's people, i.e. people residing in Northampton (apostrophe for possession) and not people from other towns.
  An example of usage:
  When the Queen visited Northampton, the town's people lined the streets to welcome her.

• Town's people: This way of saying the word means that the town has ownership of the people (apostrophe 'S') 
  
  Townspeople: This simply implies that these are some small town folks. 

• do difference 
  but, maybe... 
  townspeople is people living in the town 
  whereas town's people maybe people who belong to the town in some way 
  or maybe just two different words that mean the same thing but differ between two different generations?