Villages, Towns, and Castles are scattered across the map. When you move a unit into a neutral settlement, you can convince the settlement to join your Empire by paying a Valour cost. When you command a settlement, it generates a Gold income, and you can deploy heroes and train new units there.
Each settlement has a population of villagers, with each villager producing X Gold every 24 hours. Some races produce more Gold than others.
A settlement's daily Gold income is shown next to the Gold icon on the map. Its civilian population is shown beneath the settlement name.
Some settlements provide a fortification bonus to troops defending it. Larger cities and castles start with a fortification bonus. Some heroes and special units allow you to increase the fortifications of a settlement.
You are able to gift a settlement that you command to another player. This transfers control of this settlement to a player of your choice. Under the Trade section, choose the player that you want to give this settlement to and press the Gift button. Gifting settlements costs Valour.