Sponsored Topics. Oaktown is a town in Busseron Township, Knox County, Indiana, United States. The population was 608 at the 2010 census. Oaktown is located at 38°52′17″N 87°26′25″W / 38.87139°N 87.44028°W / 38.87139; -87.44028 (38.871331, -87.440163).