Zhenchuan Town was listed as a national small town construction pilot town by the Ministry of Construction in 1995, and was listed as a comprehensive reform pilot town for small town construction by the Provincial Restructuring Commission in 1997. In 2002, it was listed as a national small town comprehensive reform pilot by the China Small Town Reform Center of the State Council's Restructuring Office. In 2011, Zhenchuan Town was designated as one of the 107 key construction towns by the Shaanxi Provincial Government. It will support the construction and development of key towns based on the principle of accelerating the construction of key towns and promoting the process of county urbanization. Zhenchuan Town has been awarded the titles of "Advanced Township in Small Town Construction", "Well-off Town", and "Star Township" by the Ministry of Construction, the province, and the city.

Zhenchuan Town, formerly known as Zhenchuan Fort, is one of the famous military castles in the Wuding River Basin in ancient times. It was first built in 1550 AD. Since the late Ming Dynasty and the early Qing Dynasty, Zhenchuan Town has been a famous fur distribution center in northern Shaanxi and a trading market town in the Shanxi, Shaanxi and Inner Mongolia regions. In the late 1940s, Zhenchuan attracted great attention from the party and the people for its historical contribution as a commodity supply base supporting the northern Shaanxi base area.