The Former AFC Wimbledon defender became Town's third signing of the summer of 2012.
The 24 year-old full-back penned a two-year deal with the club.
Hatton, who played over 40 League Two games for the Dons last season, started out at Stevenage Borough after graduating through their Academy.
The Hertfordshire-born player has also been capped twice at England C level, playing against the Republic of Ireland in 2010 and Belgium last year.
The Town managers see Hatton as a right-back but he can also play in a midfield role.