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The option is then available when you click the 'towns' button on the main game bar. You get the option by clicking and holding the click, same as you do for changing track types on the railway button.
When you've got the 'Found Town' window open, you pick whatever options you want then click on the map and it drops a pre-built one down for you.
*you can always start a new map, and get into the sandbox options and give yourself some free money to screw around with things (Ctr+Altl+C).
**pretty sure Found Towns option is always off by default, too, so a new map will need it put back on.