In Liguria (the Italian region where Genoa and Savona are located and where I live)  there are many small towns with the same painted houses. The reason? Exactly the same told by kawecki.

Have a look here: http://www.flickr.com/photos/fotogiannella/sets/72157606463377650/ or search for "houses Liguria" with Google.

Giorgio

giorgio_2004 here, ksabers on XBox Live, PSN  and everywhere else.