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Yes, town is in the scrabble dictionary

...and is worth 8 points by itself.

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Town Definition

noun

A group of prairie dog burrows.
from The American Heritage Dictionary of the English Language, 4th Edition
A population center that is larger than a village and smaller than a city.
from The American Heritage Dictionary of the English Language, 4th Edition
A territorial and political unit governed by a town meeting, especially in New England.
from The American Heritage Dictionary of the English Language, 4th Edition
An area that is more densely populated or developed than the surrounding area: going into town to shop.
from The American Heritage Dictionary of the English Language, 4th Edition
Chiefly British A rural village that has a market or fair periodically.
from The American Heritage Dictionary of the English Language, 4th Edition

idiom

On the town Informal In spirited pursuit of the entertainment offered by a town or city.
from The American Heritage Dictionary of the English Language, 4th Edition

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Top Words by points

Points
town

7

2 letter words with TOWN

Points

no

2

on

2

ow

5

wo

5

to

2

3 letter words with TOWN

Points

not

3

wot

6

won

6

two

6

tow

6

ton

3

owt

6

own

6

now

6

4 letter words with TOWN

Points

town

7

nowt

7

wont

7

Found 17 words in 0.11157 seconds