Where can you physically see a model train display that actually works?

The Museum of Science and Industry in Chicago has an amazing layout that models a trip from Chicago to Seattle. Really well done.

Danbury Railway Museum in Danbury CT.

Miniatur Wunderland Hamburg. The worlds biggest model railway.

Here’s one in Walnut Creek CA. Multiple systems running simultaneously. I use to take my kids a lot when they were younger.

The San Diego Model Railroad Museum (in Balboa Park) is one of the best, with multiple layouts & all scales represented.

There are several model railroad displays throughout the US. Look here to start.

I think this might be the place you’re looking for. It’s called Railroad Museum of Pennsylvania, and it’s in Strasburg, PA. It has the little town you were talking about, including a house fire that gets put out, a circus, and lots of other activities. Everything moves, and it’s really cool.
http://www.rrmuseumpa.org/about/roster/modeltrains/index.shtml There is a shop attached.

in New Jersey, checkout Northlandz. ajudged by the Guiness World Records organization as the World’s Largest Model Railroad.

@thorninmud After following your link to the Chicago exhibit I was surprised to see that it’s a relatively new HO layout. I grew up in Chicago & often visited the Museum of Science & Industry, where for decades they had a large O-scale (think Lionel) layout that, while impressive in it’s overall size, had the clunky, old-fashioned & toy-like look of O scale. It used to be run by a WW2-era relay-based computer that clicked and clacked as it made switching decisions.

Glad to see things have finally improved. As you can tell, I’m a big fan of HO scale.

NY Botanical Gardens in the Bronx has one at the holidays.