The role of small towns in national development has assumed significant importance in recent times in the light of renewed interest in decentralised development strategies. Conventional approaches which viewed small towns as growth poles in a hierarchy of settlements with backward and forward linkages have proved to be of little value. There has been a relative and secular decline of small towns. This paper reviews the historical growth of small towns and their role in different national development plans in India, critiques the growth pole concept, attemps to provide alternative explanations about small towns and finally develops a self-reliant strategy for the development of small towns in the coming years.