As you can see in the text book we get time dilation equation from equation number 1.9
I just can't see how he did it here:
For now, we define the proper time between events B and the origin to be the time ticked off by a clock which actually passes through both events. It is a directly measurable quantity, and it is closely related to the interval.
Let the clock be at rest in frame $\bar O$, so that the proper time $ \Delta \tau $ is the same as the coordinate time $\Delta \bar t $.
Then, since the clock is at rest in $\bar O $, we have:
$\Delta \bar x $ = $\Delta \bar y $ = $\Delta \bar z $ =0, (1.9) so:
$ \Delta S^2 $= $ -\Delta \bar t^2 $ =$ -\Delta \tau^2 $
The proper time is just the square root of the negative of the interval. By expressing the interval in terms of $O$ coordinates we get:
$\Delta \tau = {[(\Delta \tau^2)- (\Delta x^2) -(\Delta y^2)-(\Delta z^2)]}^{1/2}$
= $\Delta t {( 1- v^2)}^{1/2}$
This is the time dilation all over again.