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Each household in a home contains two children, a pet, and two adults the latter may need to find jobs from businesses or civic buildings placed by players. Like SimCity, SimTown places an emphasis on ensuring that a balance between the number of residents and jobs is properly regulated and maintained. This aspect of the game may be compared with the annual or monthly budgets seen in SimCity however, there are no signs of actual currency used in SimTown aside from the credits allocated for the external resources there is no monetary cost associated with landscaping or the construction of buildings. If these resources are not kept in check, the town may experience negative repercussions, such as the presence of dying trees and dried-up ponds if water supply is not sufficiently provided. Trees and ponds, for example, may consume a certain amount of water, while most businesses and homes will generate an amount of garbage that will have to be dealt with using the recycling program. The amount of these resources required for the town and the credits awarded will depend on how much has been built in the town. This can be achieved by ensuring that water supply, trees, farm crops, and the recycling program remain well maintained and well funded, with the allocation of "credits" given at each stint. The primary objective in SimTown is to keep the town's citizens happy. In addition, other elements such as roads and flora can be placed, although they have no practical use beyond beautification.

Players are allocated a blank and flat tract of land, where they will be required to place homes, workplaces and civic buildings. The game structure of SimTown is similar to SimCity, but on a generally smaller and simplified scale, in which players are instead tasked with crafting a small town.