The sustainable development of a town is a comprehensive concept often considered in terms of several aspects such as economical, environmental, ecological, social and cultural. In this paper, the index system for sustainable development of a town is set up from three aspects: economical, social life and resource and environment, taking account of the situation in China. Finally, a pilot study is carried out with a town in Chongqing as an example, an evaluation system of sustainable development is developed for efficient and accurate evaluation of the development of a town.