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The phrase "a town called" is correct and usable in written English.
It can be used when introducing the name of a town or city, often in storytelling or descriptive contexts.
Example: "There is a town called Springfield that is known for its beautiful parks and friendly residents."
Alternatives: "a place named" or "a city known as".
Exact(60)
Yup, a town called Gary.
There's a town called Sladeville, in North Carolina.
It's in a town called Cumbernauld, outside Glasgow.
Look out for a town called Starbucks some time soon.
Wordlessly, she gets off at a town called, perhaps, bivona.
He grew up in a town called Plantation.
London earned its nickname as "a town called sue".
"Can you imagine living in a town called Pound Ridge?
She grew up in a town called… full-size bull; there are threeat Washington Park.
There, in a town called Bow Mills, Ruth still lives in the house they once shared.
Only ten miles from his office lies a town called Waterloo.
More suggestions(4)
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com