The research work has been taken up to highlight the fast growing problem of congestion in hill towns of Himachal Pradesh for the varied reason of urbanization and side-effects of multifaceted growth and possible solution for decongesting the town by proposal of a new town. After finding exhaustively the reasons for establishment of new town, location analysis was done to find the most appropriate site for the new town under proposal. This new town would be such that it will be self-sufficient in all respects of social, physical, technological, economical transportation & communication, ecological and environmental factors and would suffice such a quantum of population that will mar the deterioration of the old town and also would facilitate the growth of the area. After making projections, the proposal is in the form of giving up of a baseline landuse map along with detailing of facilities to be provided in the new town.