Through the reigns of the Kirats, the Lichhavis and finally the Mallas, the Valley's towns developed and maintained a "religio-cultural urbanism" that was unique. Sadly, the last forty years have been enough to destroy much of the cultural fabric of these settlements.
Dense settlements began to emerge in Kathmandu Valley at least 1500 years ago. But first, there were the Kirats, who inhabited and ruled Kathmandu Valley in the latter half of the first millennium BC. Although nothing definite can be said about the settlements established by the Kirats, it can be surmised from place-names that their settlements were mostly located at the foothills of the Valley rim and on the ridge spurs extending inward. The Kirat places of worship were located on hilltops, which today remain active as Hindu or Buddhist piths ("power places") such as Phulchoki, Nagarjun, Changu and Bishankhu.
Around the 2nd century AD, towards the end of the Kirat period and by the early Lichhavi period, small (own-like settlements began to emerge on high ground on the Valley floor. Using the Lichhavi names, they were towns like Khopring (now Bhaktapur), Lembati (Lele), Bungayumi (Bungamati), Thencho (Dahachok) and Mathang (possibly today´s Bansbari). Along with these settlements, new piths took root, like the Adinath of Chobar, Bungmalokeswor of Bungamati and Saraswati of Lele.
By the middle of the Licchavi period, about the 7th century AD, many temple towns had developed within the Valley, which may have vied in size and importance with the capital towns of Maneswor, Sankasya, Gokarna and Deupatan, which were themselves expanding. These towns usually developed on ridges adjacent to rivers, on land that was not agriculturally productive. The cultural nucleus was provided by the ruling temple or pith, and the economic base was intensive farming and expanding trade with each other and with states to the north and south of the Valley.