The small town of Atkinson, NH -- home to roughly 7,000 people -- has recently welcomed a business called the Diaper Spa ... which operates exactly how it sounds. It's a place where adults with this sort of need for baby-like experiences can let it all hang out, unjudged.

They have a ton of services for sale at this place ... including virtual play dates that go for $200/hour and an all-day "Diaper B&B" experience that provides baby pampering for $1,500.

As you might imagine ... this diaper spa in Atkinson has rubbed a lot of folks in town the wrong way -- and some are even expressing straight-up outrage and concern over the fact this place even exists, not to mention what they say is too close proximity to parks/schools.

Funny enough ... a major player in the ABDL (adult baby/diaper lovers) scene says these small-town people's indignation might actually be justified, 'cause she thinks there wasn't a lot of thought put into the specifics ... namely, location and cost -- which she's scoffing at.

We're talking about Riley Kilo -- who's a known ABDL proponent, and who supports this movement when done correctly. In this case, however, she thinks the Diaper Spa owners screwed the pooch a bit in execution of their vision, even if their heart is in the right place.

According to Riley, there's a few things that she believes are misguided when it comes to Diaper Spa -- including where it actually is. Fact is, she tells us this sorta business should've been set up in a more metropolitan area with more diversity/acceptance for this sorta stuff.

She says it's no surprise residents in a small, rural town are reacting the way they are -- and believes the owners should've been more mindful. RK also slams their price range for their services -- calling them "fetish prices," and way too expensive -- and even thinks what they charge lends to the notion this is all just a bunch of kinky sex stuff ... which she says is off too.