diff --git a/src/town_cmd.cpp b/src/town_cmd.cpp
--- a/src/town_cmd.cpp
+++ b/src/town_cmd.cpp
@@ -536,20 +536,54 @@ static void TileLoop_Town(TileIndex tile
 			t->supplied[cs->Index()].new_act += moved;
 		}
 	} else {
-		if (GB(r, 0, 8) < hs->population) {
-			uint amt = GB(r, 0, 8) / 8 + 1;
-
-			if (EconomyIsInRecession()) amt = (amt + 1) >> 1;
-			t->supplied[CT_PASSENGERS].new_max += amt;
-			t->supplied[CT_PASSENGERS].new_act += MoveGoodsToStation(CT_PASSENGERS, amt, ST_TOWN, t->index, stations.GetStations());
-		}
-
-		if (GB(r, 8, 8) < hs->mail_generation) {
-			uint amt = GB(r, 8, 8) / 8 + 1;
-
-			if (EconomyIsInRecession()) amt = (amt + 1) >> 1;
-			t->supplied[CT_MAIL].new_max += amt;
-			t->supplied[CT_MAIL].new_act += MoveGoodsToStation(CT_MAIL, amt, ST_TOWN, t->index, stations.GetStations());
+		switch (_settings_game.economy.town_cargogen_mode) {
+			case TCGM_ORIGINAL:
+				/* Original (quadratic) cargo generation algorithm */
+				if (GB(r, 0, 8) < hs->population) {
+					uint amt = GB(r, 0, 8) / 8 + 1;
+
+					if (EconomyIsInRecession()) amt = (amt + 1) >> 1;
+					t->supplied[CT_PASSENGERS].new_max += amt;
+					t->supplied[CT_PASSENGERS].new_act += MoveGoodsToStation(CT_PASSENGERS, amt, ST_TOWN, t->index, stations.GetStations());
+				}
+
+				if (GB(r, 8, 8) < hs->mail_generation) {
+					uint amt = GB(r, 8, 8) / 8 + 1;
+
+					if (EconomyIsInRecession()) amt = (amt + 1) >> 1;
+					t->supplied[CT_MAIL].new_max += amt;
+					t->supplied[CT_MAIL].new_act += MoveGoodsToStation(CT_MAIL, amt, ST_TOWN, t->index, stations.GetStations());
+				}
+				break;
+
+			case TCGM_BITCOUNT:
+				/* Binomial distribution per tick, by a series of coin flips */
+				/* Reduce generation rate to a 1/4, using tile bits to spread out distribution.
+				 * As tick counter is incremented by 256 between each call, we ignore the lower 8 bits. */
+				if (GB(_tick_counter, 8, 2) == GB(tile, 0, 2)) {
+					/* Make a bitmask with up to 32 bits set, one for each potential pax */
+					int genmax = (hs->population + 7) / 8;
+					uint32 genmask = (genmax >= 32) ? 0xFFFFFFFF : ((1 << genmax) - 1);
+					/* Mask random value by potential pax and count number of actual pax */
+					uint amt = CountBits(r & genmask);
+					/* Adjust and apply */
+					if (EconomyIsInRecession()) amt = (amt + 1) >> 1;
+					t->supplied[CT_PASSENGERS].new_max += amt;
+					t->supplied[CT_PASSENGERS].new_act += MoveGoodsToStation(CT_PASSENGERS, amt, ST_TOWN, t->index, stations.GetStations());
+
+					/* Do the same for mail, with a fresh random */
+					r = Random();
+					genmax = (hs->mail_generation + 7) / 8;
+					genmask = (genmax >= 32) ? 0xFFFFFFFF : ((1 << genmax) - 1);
+					amt = CountBits(r & genmask);
+					if (EconomyIsInRecession()) amt = (amt + 1) >> 1;
+					t->supplied[CT_MAIL].new_max += amt;
+					t->supplied[CT_MAIL].new_act += MoveGoodsToStation(CT_MAIL, amt, ST_TOWN, t->index, stations.GetStations());
+				}
+				break;
+
+			default:
+				NOT_REACHED();
 		}
 	}