Towne directed the sports dramas Personal Best (1982) and Without Limits (1998), the crime thriller Tequila Sunrise (1988), and the romantic crime drama Ask the Dust (2006).
Towne was born in Los Angeles, where he grew up in San Pedro, the son of Helen and Lou Schwartz. He is of Romanian descent through his father, and Russian descent through his mother; the family was Jewish. He has a younger brother, Roger, who co-wrote the 1984 film The Natural starring Robert Redford.
He graduated from Pomona College in Claremont, California.

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