Abstract: Policies play a pivotal role in driving the construction and development of small towns, thereby directly influencing the fundamental composition of the county's urban system and the county-level urbanization. This paper selects Xuzhou and Suzhou, two typical regions in Jiangsu Province that represent different stages of urbanization development, as the research objects. It constructs a comprehensive comparative analysis framework for the entire process of small town construction policy formulation and implementation, encompassing policy objectives, policy measures, and policy implementation. By integrating related policies from Xuzhou's 'Central Town Creation' and Suzhou's 'Beautiful Town Construction' initiatives, which have spanned over a decade, a detailed policy comparative analysis is conducted. The common logic underlying small town construction policies is to adopt spatial governance as the entry point, utilizing 'people' 'land' and 'finance' policies as the toolbox, and implementing these policies continuously and progressively. Additionally, due to variations in development goals and practical foundations, regions at distinct stages of urbanization differ in their emphasis on policy combinations and implementation pathways. In the future, policies pertaining to small town construction must continually innovate and optimize within the context of strong coordination, tight constraints, and high-quality development in the new era, in order to further effectively propel both their own and county-level development.