Effective application of survey results in social service is a core driving force of urban geological survey. As the key result of urban geological survey, the urban geological dataset is critical to the effective application of geological survey results in service. The China Geological Survey (CGS) has deployed a pilot project for comprehensive survey of geological environment in small towns of Danyang. The workload of the comprehensive survey involves the interpretation of remote sensing images covering an area of 1 047 km² (including data from three phases), 767 survey points, 115 boreholes, accumulated footage of 8 720 m (including 915 m for the Quaternary boreholes, 2 366 m for hydrological boreholes, and 5 439 m for engineering boreholes), 2 904 Quaternary geological samples, 240 groundwater samples, 1 108 undisturbed earth samples, 2 482 groups of soil samples, 70 points for simultaneous measurement of groundwater levels and 18 pumping tests. In this work, the distribution laws of the hydrogeology, engineering geology, and geologic disasters in Danyang City were ascertained. Furthermore, in view of the geological demand in the planning and construction of Danyang City, the original data obtained from various surveys were specially processed and a dataset was developed accordingly, thereby, providing strong support for the planning and construction of Danyang City. In this paper, the method of developing a geological survey dataset of small towns for the purposes of application and social service was established by collating and summarizing data sources, data collection methods and data processing techniques, in order to provide references for a geological survey in other small towns as well as the processing and application of the geological dataset in the future.