If the reason for them coming together was to lay asphalt, I'd say "The villagers banded together to lay asphalt ...". In BrE, we'd say "to tarmac the main street". However, "tarmac" means very different things in BrE and AmE. Also, we don't really refer to "villagers" any more in the UK, even for people who live in a village!
In BrE, yes, but bear in mind that that would only be possible if the people of the village own the main street privately. If not, laying tarmac (and all other remedial work) on public streets is the responsibility of the local council and/or the Department of Transport. I'm not 100% sure, but I think tarmacking a public road yourself might be a criminal offence!