The utility model discloses a refuse disposal system for a market town. The refuse disposal system comprises an incinerator, a drying bed and an organic matter processing unit. The incinerator consists of a chimney and a furnace body, wherein the chimney is installed at the upper part of the furnace body, and a flue of the chimney is communicated with the interior of the furnace body; the furnace body is of an internal hollow cavity, the upper part of the furnace body is of an arc rotating body, and the lower part thereof is of a cylinder body; the upper part of the cylinder body is provided with a feeding port; the feeding port is provided with a furnace door; the lower part of the cylinder body is provided with a wind inlet and an air inlet; and a furnace grate is arranged between the wind inlet and the feeding port. The drying bed is of an enclosed rectangular box body, the upper surface of the drying bed is of an iron plate cover surface, the front surface thereof is provided with three firing openings, and the side surface thereof is provided with the air inlet. The organic matter processing unit comprises a biomass pool as well as a water-logged compost kiln and a gas holder that are matched with the biomass pool for use. The refuse disposal system has the characteristics of simple structure and low cost, can effectively realize the harmless disposal and the utilization of refuse and is beneficial to protecting ecological environment.