The 12th Five-Year Plan period was unusual five years in the development of China. Under the dual pressure of complex international environment and arduous domestic reform task, China made outstanding achievements in economic development, which lays a solid foundation for building a moderately prosperous society in all respects in the 13th Five-Year Plan period. The key and difficult points of building a moderately prosperous society in all respects lie in solving issues concerning agriculture, farmers, and rural areas. The 18th National Congress of the CPC stated that integrated urban and rural development is the fundamental approach for solving issues concerning agriculture, farmers, and rural areas. As a transitional form from rural areas to urban areas, small town play an important role in integrated urban and rural development. In the 13th Five-Year Plan period, China should take a new road of characteristic urbanization, energetically develop key towns, central towns, and characteristic towns, use points to drive areas, and promote coordinated progress of urbanization construction and new countryside construction. Focusing on the objective of building a moderately prosperous society in all respects and taking Shangrao City as an example, we analyzed construction of small town, in order to provide scientific theoretical reference for urbanization development, plan preparation, and policy formulation of Shangrao City.