This village, I believe, was built in the modular medieval village studio. This was heavily used in season 9 and 10 of SG-1 and all through Atlantis. The building facades could be rearranged to create new layouts for any new off-world village visited in either show. You can see the lighting grid in the ceiling that provides an even soft light.

The creation of this set would have saved a lot of money for the production. Prior to this, scenes in a village like this would have required a location shoot, which comes with added costs in money and time. Off-world looking locations around the Vancouver area were getting fewer with constructions and redevelopments. No more travel, no more waiting for bad weather to pass.