China's expansion in higher education has also given rise to developing university towns in sub-cities to deal with increasing enrollments and contribute to broader socio-economic development. Taking Xiasha University Town in Hangzhou as a case study, this paper adopts a tripartite framework of teaching, research, and service to investigate the role of university towns in human capital and skills development, regional innovation, and social and community services. This paper is the first to systematically evaluate Hangzhou's largest university town after more than two decades since its development; it also provides a more nuanced and contextual approach to university town developments similar to others in China or broader learning region integrations globally. Documentary research and interviews from relevant stakeholders were utilized to collect data. This study presents the three dimensions contextualized within Xiasha and points to issues that can further improve such through a more efficient resource-sharing scheme, a focused discipline orientation, more significant investments in research and development, and a more active role in community engagement.