More than 1,000 tents will be erected there - three tents for each family.
"They probably will have to spend the winter there, so winter tents will be used," Yang said.
Zhouqu suffered one of the worst mudslides, which killed about 1,280 people, and rescuers are continuing to search for survivors in other parts of the country's west.
In Yunnan province, in the southwest, more than 1,100 people are searching for dozens of people missing since a mudslide levelled the village of Puladi early on Wednesday.
At least six people were killed in the mudslide and another 86 are missing.
Rescuers are struggling against Puladi's remote location and the muddy conditions.
About 100 people were living in the village, some of whom were workers at a small iron mine in the region.
In neighbouring Sichuan province, where 16 people have died in mudslides over the last week, two carriages of a train fell into a river after approaching a bridge destroyed by floods.
All of the passengers had been pulled to safety before the carriages dropped to the water.