We present electron spin resonance data of Ti$^{3+}$ (3$d^1$) ions in single crystals of the novel layered quantum spin magnet TiOCl. The analysis of the g tensor yields direct evidence that the d_{xy} orbital from the t_{2g} set is predominantly occupied and owing to the occurrence of orbital order a linear spin chain forms along the crystallographic b axis. This result corroborates recent theoretical LDA+U calculations of the band structure. The temperature dependence of the parameters of the resonance signal suggests a strong coupling between spin and lattice degrees of freedom and gives evidence for a transition to a nonmagnetic ground state at 67 K.