It's really remote, and was more remote when people chose the
spot for it. (Trust me, I live in Los Alamos).
Also, there was a lot of tree and foliage, so if building were
painted green they could blend in so the town wouldn't be easily
dicovered.
Related Q&A:
Why was los alamos chosen for a testing site?-Well, there were several reasons why Los Alamos was chosen as a testing site. First of all, it was a relatively isolated area, which meant that there would be less chance of the tests causing harm to a large population. Also, the terrain and geography of the place provided some natural barriers and protection. Another factor was that it had the necessary infrastructure and resources available to support such complex and sensitive testing operations. Oh, and the government probably saw it as a strategic location that could be easily controlled and secured. So, all these things combined made Los Alamos a suitable choice for a testing site.