
Homesteads
Prior to Eco 10, there was a single global government, and laws and decisions it made affected everyone globally. No longer. With this update, the world starts with no governments, and you must band together with your fellow Citizens to create them. Each Citizen begins with the ability to create their own homestead. This is essentially a Tier-0 settlement, population 1. It allows a Citizen to claim a small amount of property around them, with no other government’s laws or taxes able to apply them. While this gives you total freedom to do as you wish (pollute up a storm if you like), it comes at a cost, because you’re limited in how much land you can claim. There’s only so much land that can be managed by a singular person.
Towns
To take the next step up and start claiming more land and create laws and taxes, a Town must be formed. To do so, you’ll need to find fellow Citizens who wish to create a Town with you, a minimum of 3. You’ll need to build a Town hall on new property to form the center of the Town, and you’ll need to ratify a Town Constitution which the majority of the initial Citizens agree to. From there, you can found your Town with a flourish: [previewyoutube=BJLxT4jafQk;full][/previewyoutube]A Town is founded! Once founded, a Town will carve out an area of Influence, which is a new concept in Eco 10.Influence



Countries
Eventually, Towns will start to feel cramped as they reach their max level of influence or push up against neighbor’s influence. The next step, once the required tech tier is reached, Citizens can start a Country.


Federations
The final tier of settlements is a Federation, which is akin to a United-Nations-like collection of countries. A Federation must have a minimum of 2 member countries ratify its constitution, and if getting several Towns full of Citizens to agree to form a Country is a huge achievement, getting several Countries, full of Towns full of Citizens to agree requires some superhuman diplomacy.
Annexation
A higher-tier settlement can annex a lower-tier settlement, meaning force it to become a member Citizen or settlement. Homesteads can also be annexed, forcing a Citizen to begin abiding by the rules of the settlement who may have been flouting them before. Annexation does not come cheap, however. To do so a settlement must have a base level of Culture, plus more Culture than the target, more citizens, and must overlap the influence of the target by a significant amount. Additionally, a cost of goods must be paid to perform the annexation, with half of these goods going to the annexed settlement, and the other half being destroyed. In this way, annexation is always going to be more costly than arriving at a diplomatic solution, but sometimes necessary when diplomacy fails.