diff --git a/economy.c b/economy.c
index 97fc55c0d0..8839d7db14 100644
--- a/economy.c
+++ b/economy.c
@@ -848,6 +848,19 @@ Pair SetupSubsidyDecodeParam(const Subsidy* s, bool mode)
 	return tp;
 }
 
+void DeleteSubsidyWithTown(TownID index)
+{
+	Subsidy *s;
+
+	for (s = _subsidies; s != endof(_subsidies); s++) {
+		if (s->cargo_type != CT_INVALID && s->age < 12 &&
+				(((s->cargo_type == CT_PASSENGERS || s->cargo_type == CT_MAIL) && (index == s->from || index == s->to)) ||
+				((s->cargo_type == CT_GOODS || s->cargo_type == CT_FOOD) && index == s->to))) {
+			s->cargo_type = CT_INVALID;
+		}
+	}
+}
+
 void DeleteSubsidyWithIndustry(IndustryID index)
 {
 	Subsidy *s;
@@ -855,7 +868,7 @@ void DeleteSubsidyWithIndustry(IndustryID index)
 	for (s = _subsidies; s != endof(_subsidies); s++) {
 		if (s->cargo_type != CT_INVALID && s->age < 12 &&
 				s->cargo_type != CT_PASSENGERS && s->cargo_type != CT_MAIL &&
-				(index == s->from || (s->cargo_type!=CT_GOODS && s->cargo_type!=CT_FOOD && index==s->to))) {
+				(index == s->from || (s->cargo_type != CT_GOODS && s->cargo_type != CT_FOOD && index == s->to))) {
 			s->cargo_type = CT_INVALID;
 		}
 	}
diff --git a/economy.h b/economy.h
index e4b8f2afc8..823e167c88 100644
--- a/economy.h
+++ b/economy.h
@@ -60,8 +60,9 @@ int UpdateCompanyRatingAndValue(Player *p, bool update);
 
 VARDEF Subsidy _subsidies[MAX_PLAYERS];
 Pair SetupSubsidyDecodeParam(const Subsidy* s, bool mode);
-void DeleteSubsidyWithIndustry(uint16 index);
-void DeleteSubsidyWithStation(uint16 index);
+void DeleteSubsidyWithTown(TownID index);
+void DeleteSubsidyWithIndustry(IndustryID index);
+void DeleteSubsidyWithStation(StationID index);
 
 int32 GetTransportedGoodsIncome(uint num_pieces, uint dist, byte transit_days, CargoID cargo_type);
 uint MoveGoodsToStation(TileIndex tile, int w, int h, int type, uint amount);
diff --git a/town_cmd.c b/town_cmd.c
index 99a8210837..9238463698 100644
--- a/town_cmd.c
+++ b/town_cmd.c
@@ -79,6 +79,7 @@ void DestroyTown(Town *t)
 	}
 
 	DeleteName(t->townnametype);
+	DeleteSubsidyWithTown(t->index);
 
 	MarkWholeScreenDirty();
 }