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New Town (Nove Mesto) was created by the king Charles IV in the 14th century and is the most architecturally varied part of Prague. New Town became the new residence of the king and in addition, solved the housing problem within the city walls of Prague. What was original about Charles IV's action was that he chose, instead of creating an administratively dependent suburb, or an extension of the old town, as was the usual practice, he created in the New Town an independent royal city with its own legal structure.
In order to increase the importance of the city the king founded also the Charles University on 7 April 1348, the first university in central. New |Town was intended to become an important economic centre in Central Europe.
Population of The New Town was consisted mainly from poorer craftsmen of Czech nationality, who had always dominated in the older riverside villages, while in the Old Town mostly German and Jewish craftsmen were found. These large economic and national differences resulted in a clear separation of the two cities and were in the end also crucial for the conflict during the Hussite revolution.
Although New Town can trace its current layout to its construction in the 14th century, only few churches and administrative buildings from this time survive. There are many secular and educational buildings in New Town, but also especially magnificent gothic and baroque churches. These nevertheless are not the main drawing points for tourists. New Town's most famous landmark is Wenceslas Square, which was originally built as a horse market and now functions as a center of commerce and tourism.