Wuzhen Town lies in the north of Zhejiang Province and by the west side of the Jinghang Grand Canal. Being a place of strategic importance for both land and water transportation, it is known to all that Wuzhen is at the juncture of the two provinces (Zhejiang and Jiangsu), three prefectures (Jiaxing, Huzhou, and Suzhou), and seven counties (Wucheng, Gui'an, Chongde, Tongxiang, Xiushui, Wujiang, and Zhenze).

In the past, Wuzhen was divided into two towns by the Che Brook; the west part was named Wu Town, belonging to Wucheng County of Huzhou Prefecture, and the east part was named Qing Town, belonging to Tongxiang County of Jiaxing Prefecture.

According to the chorography of Wuzhen and Qingzhen, during the Spring and Autumn Period (770-476BC), Wuzhen was the boundary area of Wu and Yue states. It was during the Tang Dynasty (618-907) that the name of "Wuzhen Town" was officially accepted for the first time. In the Southern Song Dynasty (1127-1279), it was divided into Wu and Qing towns by the Che Brook. After liberation, the two towns eventually merged and was renamed Wuzhen, administrated by Tongxiang County.

Wuzhen is not only famous for its beautiful rivers and lakes, but also the hometown of the famous writer Mao Dun.