this towns not big enough for the two of us

To say this towns not big enough for the two of us it means that there are two people in the public eye, or who have some kind of superiority over the rest of the people, that in the small town (or large) two people of the same stature cant be in the same town. The idiom originated as a line from the 1948 animated film Bugs Bunny Rides Again and continues to be used as a way to say every town is only large enough for one superior person.