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In China, small city cultivation has been raised to the development requirement of national level, which would promote the balanced development of urban and rural areas to build a reasonable urban system. In the planning of pilot towns, their size, space, function and features are four core issues. Taking Zhouquan Town in Tongxiang City as a case study, the article, based on the four core issues, analyzed the main problems of town development which included limited town size, dispersed disorderly development of town spatial, weak public service function and poor environment quality. It proposed corresponding main ideas and strategies to solve these problems and put forward the planning scheme. The case study proposed a guideline in analyzing problems and presenting strategies based on the above four core issues for town planning against the background of small city cultivation, so as to provide reference and inspiration for similar towns.