Taking the first two batches of characteristic towns in the China as an example, comprehensively using the spatial analysis methods, such as the nearest index, geographic concentration index, imbalance index, nuclear density, and geographical contact rate, this paper analyzes the spatial distribution of characteristic towns in the country. On this basis, it puts forward the industrial characteristics and development suggestions. The main conclusions can be drawn as follows: The distribution of characteristic towns in China is characterized by "agglomeration in general, relying on economy, along the line, besieging the city and near scenery". From the perspective of spatial distribution type, the characteristic towns are mainly distributed in the eastern region, and southeast of the demarcation line, which shows a trend of concentration pattern. From the perspective of spatial distribution equilibrium, the characteristic towns show an unbalanced pattern, and the concentration ratio is high. From the perspective of spatial distribution density, they present a pattern of more in the east while fewer in the west, more in the south while fewer in the north, as well as more in the southeast while few in the northwest. Generally speaking, there are five major agglomeration areas: the Bohai Rim, the Yangtze River Delta, the southeast coastal region, the Chengdu and Chongqing in the southwest, and the Central Plains. The spatial distribution of the characteristic towns is the result of the comprehensive role of regional economy, location transportation, core city and tourism resources under the policy guidance. The first two batches of characteristic towns are mainly dominated by agriculture and industry, and the industrial characteristics need further improvement. According to the results, we put forward some suggestions for future development of characteristic towns from rule of law, policy guidance, industry guidance and elements matching.