The left-back, whose previous deal was due to expire this summer, put pen to paper on a new three-year deal at The Hawthorns last month.
Townsend dislodged former England international Kieran Gibbs to become the Baggies’ first-choice left-back last season.
His campaign this year was then interrupted when he picked up a knee injury.
But after returning to full fitness, he again dislodged Gibbs and has since impressed playing under Sam Allardyce.
With his previous contract due to expire in June, Townsend’s impressive displays would have undoubtedly led to interest from elsewhere.
But he always had his heart set on staying with the Baggies – with the defender particularly impressed with the good work carried out by the Albion Foundation.
“We spoke about the contract just before I got injured,” Townsend said.
“So with the injury and the new manager coming in, there were obviously worries about whether the contract was going to be there still.
“You wonder ‘does the gaffer want me?
“Everyday things like that were going through my mind.
“Then obviously I got back fit and managed to get the deal sorted and over the line.
“I was delighted because I have really enjoyed my time here. I never had any interest in moving because I like it here.
“There is a great family feel around the club.
“The fans have been great since I’ve joined and I’ve mentioned before the Albion Foundation – it’s beyond anything I’ve seen at any other club.
“I think the work they are doing with the community is fantastic.”
Last year it was revealed Baggies legend Chris Brunt was working with the Albion Foundation to deliver food parcels with his sons Zach and Charlie.
And that inspired Townsend to do his bit.
“West Brom is a big part of a lot of people’s lives,” the 27-year-old continued.
“Chris Brunt was handing out meals during lockdown and all the boys are willing to help out.
“We do zoom chats. It’s only half-an-hour and it doesn’t seem like a big deal, but it could mean a lot to someone. The lads are more than happy to do that.
“I’ve been delivering meals during lockdown. I’ve done zoom calls with fans to talk about the game and the Albion Foundation has also got numerous disability teams.
“I really took to it when I joined, we go out into the community and we do a bit for the foundation and actually see the work they do.
“It’s a very, very, special club.”
Both Townsend and centre-back Kyle Bartley were injured when Allardyce took over as boss back in December.
But both has since gone on to thrive under the 66-year-old.
And Townsend admitted it was helpful having Bartley with him in the treatment room.
“Me and Barts are close anyway and obviously being injured is difficult,” he added.
“But if one of us was having a down day the other would drag them through.
“We were both in the same boat when the manager came here.
“Barts got back a little quicker. But now he is in the team and captain. He’s done really well.”