It was originally composed for the 1949 play Landscape with Chimneys, produced by Joan Littlewood and Theatre Workshop and set in a North of England industrial town.

[3] In a BBC radio documentary about “Dirty Old Town”, Professor Ben Harker (author of Class Act: The Cultural and Political Life of Ewan MacColl, 2007, Pluto Press) explains that although MacColl later claimed the song was written as an interlude "to cover an awkward scene change", studying the script of the play Landscape with Chimneys reveals the song occurs at the beginning and at the end of the play.

Harker argues the song is important to the play because “it captures the movement from dreamy optimism and romance to militancy, frustration and anger.

[6] John Leland at Spin called the song, "a sparse melancholy reminiscence of love in an industrial sewer.

"[7] AllMusic said, "while Shane MacGowan may not have written "Dirty Old Town", his wrought, emotionally compelling vocals made [it] his from then on.