100 years ago there was a ton of industry: paper mills, textile mills, marble and limestone quarries. These were supported by a train that ran through town to transports goods to and from Boston, and the town sprouted up organically around these industries.
One by one, they all faded away but when I was little the town still had much of the residual glory: a downtown full of shops, a mahogany-lined library and school, plus a big new mall 15 minutes away. Then as I grew up all the things started to go away. The two drive-in theaters, the entire downtown shopping area, the malls. All of it bottomed out when the Walmart came to town (familiar story...)
But now there is a bit of a revival around art, nature and tourism, which they have been pushing my entire life. The old train tracks are now a walking/bicycle path. The old textile mill is a modern art museum. The shell of its former existence gives the town a very unique character now. But there is a big disconnect between people who grew up there and the tourist mindset, and it's interesting to be able to see and understand both sides of it. The people that are moving there or want to visit there have a COMPLETELY different mindset than the people who do live there, even most the people trying to drum up the tourism.
Most small towns aren't going to revive via tourism, of course, but I think the bigger problem is every small town is trying to find some big "thing" to come save them. A new plant, a new business hub of some sort. Instead they should be focusing on their strengths, such as they exist: cheap housing, open spaces, access to nature, no commuting traffic. Cut out red tape and let people redefine these town husks like hermit crabs changing shells. I think the best approach is to focus on local community elements that are attractive to people who can work remotely. It's got to be success by a thousand cuts, because most of these communities have no chance at a real influx of business.