The town itself is made entirely of bubbles. In fact, it is a bubble equivalent to Bikini Bottom. There is an entire transportation system including bus systems. There also cars, however the town's population mostly goes to work by floating through the air.
Bubbletown features many facilities, some of which are parodies of their Bikini Bottom counterparts, which include but are not limited to:
Bubble Buddy introduces Bubbletown by giving a tour on its various features and facilities, which SpongeBob expressed enthusiasm toward.
SpongeBob then encounters a bubble motorcycle with a flat tire and repairs it through one of his bubble blowing methods. He also decides to help a slow elderly man by blowing him a motorized bubble cart.
When SpongeBob accidentally steps on a woman's two bubble puppies, he begins to slip on the bubble liquid, causing him to go out of control and unintentionally wreak havoc upon Bubbletown. As punishment for the damage he caused, SpongeBob is sentenced to three years life in Bubbletown Prison.
Realizing the current state he is in, Mr. Krabs ventures into Bubbletown and bails SpongeBob out of jail. He is prevented by the bubble police officer, but Mr. Krabs manages to kill him in a fight and then pop the entire prison.
Not only does Mr. Krabs pop the prison, he ends up spinning around uncontrollably and using his claws to pop all of Bubbletown. As a result, the town is reduced into puddles of suds, which saddens SpongeBob. Bubble Buddy arrives on the scene with a solution to SpongeBob's problem, which is a giant bottle of bubble soap. With all that soap, SpongeBob is able to blow the town back up into its original state.
In the newly-blown Bubbletown, Mr. Krabs resolves the conflict by opening a Krusty Krab-like restaurant in Bubbletown called the Bubbly Krab. However, he pops the restaurant out of distaste upon being informed of its lack of salary.