Banished Wiki
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There are many resources that a town will produce, trade, and use for survival.

Logs are produced by cutting down trees and from the work of a forester. They are used in the construction of buildings, firewood, and tools. Regardless of the type or size of a tree, it will always yield 2-3 logs when cut down.
Stone is produced by harvesting stone piles on the surface, or by building a quarry. It is used in construction. Regardless of a single large stone or a tight gathering of many smaller ones in a 1x1 space, they will always yield 2 stone when mined by an educated citizen, or 1 stone when mined by an uneducated citizen.
Iron is found in deposits on the surface, or by building a mine. It is used in construction and the creation of tools.
Firewood is used to heat homes, and is created by chopping logs into firewood using a wood cutter.

Wood houses need roughly 30 firewood per year, stone houses need 15.

Coal must be mined from the earth or purchased through trade. It can be used by a blacksmith to make steel tools, but also provides an alternate heat source to firewood.
Leather comes from operating a hunting cabin or by slaughtering cattle in a pasture. It is used to make clothing.
Wool comes from sheep raised in a pasture and is used in making clothing.
Food is produced by hunters, gatherers, fishermen, crop fields, orchards, and pastures.
Herbs are used to keep citizens healthy when their diet is poor. They are collected by an herbalist.
Tools are made by a blacksmith. They are required by all workers to perform their jobs.
Clothing is used to keep citizens warm in the winter. It is crafted by a tailor.
Alcohol is produced by a tavern. Living near a tavern and drinking ale can make citizens happier.
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