A golf course 1/4 the size of a standard course, with similar playability? Go back 30 years. to a Jack Nicklaus project: http://sportsillustrated.cnn.com/vault/article/magazine/MAG1122331/
From the SI article, quote: "The new ball makes it possible to build courses in a quarter of the normal acreage—the Cayman course covers just 38 acres—and playing time can be cut in half. The Cayman drives about half the distance of a regular ball. "It feels a little light on the club face," Puckett says, "but it has a nice click to it." Because of its unique weight distribution it reacts like a regular ball—you can hook it, fade it, make it back up. The closer a player gets to the hole, the smaller the difference in the distances that regular and Cayman balls play." http://sportsillustrated.cnn.com/vault/article/magazine/MAG1122331/
But I don't know why a Cayman ball couldn't be played at any par 3 or for that matter any golf course. Pars for a standard hole would range from 3-10, but that means a lot of useful practice with fairway woods and long irons during a round. Might irritate those behind you, but if the course isn't crowded what's the harm?
Cayman balls have pimples instead of dimples and are available today. For example http://www.golfballs.com/Golf-Balls/Cayman-Pimple-Limited-Distance-Golf-Balls.htm