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The town is surrounded by a forest that is densely inhabited by many Ghost-type Pokémon; as such, all residents of Len Town own a Psychic-type Pokémon to fend of Ghost-types, as the former has a type advantage while the latter doesn't, although this was only in Generation I; in Generation II, the generation Len Town was introduced in, Ghost-types deal an equal amount of damage to Psychic types as they do to them.
In the anime, Team Rocket built a Gengar-like machine that repelled all Psychic-type attacks, and Team Rocket used it to steal the townspeople's Pokémon; however, Ash and Co. stopped the scheme and returned all the Pokémon captured.