In your Town, there are preset administrative buildings and slots for constructing administrative and resource buildings.
Administrative buildings are an essential part of the Town. They are needed for training warriors, learning Knowledge, and for other game mechanics. Resource buildings are for producing resources.
Upgrading buildings is important for the successful development of your Town and increasing the number of Influence points you have. Read more about buildings in your Town in the "Preset administrative buildings" and "Buildings you can construct" subsections.
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