In Town 77, each player has a hand of tiles, with each tile showing one of seven house styles in one of seven colors/patterns. (The color/pattern of a tile also shows on its reverse side.) The game has 49 tiles in total, one of each possible combination. Each player starts with a hand of random tiles.
The first player places a tile in the upper-left corner of an imaginary 7x7 square, then on each subsequent turn a player adds a tile to a row or column in this square so long as this tile is adjacent to at least one other tile and the color/house style isn't already present in this row and column. After playing a tile, a player can choose to draw a new tile or not. Once you lower your hand size, you can't increase it again.
If you can't play on a turn, you're out of the game, and once everyone is out, whoever has the fewest tiles in hand — or who played latest in the event of a tie — wins. If you play your final tile, you win, but if you don't draw new tiles, you might find yourself unable to play!