Actually, in NJ the number of liquor licences in any given municipality is based on population...I don't know the formula, but the number of residents = the number of licences.
Close, the number PERMITTED by the State is based on population, the final amount issued is set by the municipality - it can be less than the amount permitted. There are plenty of dry towns in NJ where there are not liquor licenses. I used to live in one. There were package licenses, but no restaurants or bars that served alcohol. Interestingly that is where we hold our Oktoberfest and bill it as one of the few times you can actually drink in that town.