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# Urban Autonomy

## Definition

The condition of self-governance and economic independence achieved by towns through royal charters and special privileges, allowing them to establish their own legal systems, commercial regulations, and governance structures separate from feudal control. Urban autonomy represented a fundamental shift in economic organization from hierarchical feudal relationships to more market-based commercial systems.

## Source Chapter

Book III, Chapter 3

## Context

Smith presents urban autonomy as a crucial development in the evolution of commercial society. He shows how the gradual achievement of autonomy by towns, despite their initially servile condition, created the institutional framework necessary for market economies to develop, with cities serving as incubators for commercial practices and economic innovation.

## Economic Domain

Regulation

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