You can have players from other surrounding towns in PAL as long as both PAL org's agree on it. The town where the boy lives needs to sign a document releasing them. If the kid is any good 99% of the time it doesn't happen but it can and does.
Exactly and why I didn't mention this exception.
Does every town have a PAL?
if not, then PAL allows them to participate in a neighboring town's program, but it has to be a neighboring program.