Sioux Lookout Ontario! 10 points!!?
I suppose if you never need to leave the centre of town you'd manage without a car, but if you want to go anywhere that isn't within walking distance--keep in mind that the average low in December, January and February is about minus 20C and there's probably going to be a few feet of snow on the ground--then a car would help. It's like that in any small town. Some things are going to cost more than in Toronto, like food and heat, but some will cost less, like rent.
Obi Wan Knievel
Umm... how to explain this politely. Nope, there's no way to do it. As soon as you move out of Toronto, you're going to need a car. Period. It doesn't matter how close you live to work, you need a car. Everywhere in Canada that isn't Toronto has either vastly inferior public transit or none at all. Also, the cost of living (and everything else) is much lower in not-Toronto. Cost of living is based entirely on supply and demand, and nobody wants to live in Sioux Lookout. The cost of living will be very low there.
The cost of living isn't bad. Needing a car depends on how close you can find living space to your work. There isn't a huge amount of transit.