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Three municipalities

Austrian authorities, planning to build a full-scale military fortress, cleared the area west, east and south of the fortress walls and in 1692 moved former provincial community approximately 1 mile west of the city walls. This action created new village on the right river bank - Gornji grad ("Upper Town").

In the summer of 1698 they moved the population from the left river bank and settled that population east of the fortress. This led to another village forming on the east, which wass called Donji grad ("Lower Town"). Preparations for the construction of huge military fortress - Tvrđa ("Fortress") - lasted for years. Finally, the construction started in 1712, although decision on its construction was made as early as 1709. The Upper Town together with Fortress constitute a single administrative unit until 1702, when it gets its own municipal government. Lower Town, also, became municipality, but later, in 1704.

The Fortress was modeled after the lowland Dutch forts and started its construction on August 1st 1712. Construction went underway steady, a nd was finnished in 1722. It was mostly completed, but construction on the smaller scale continued until the 1760s. The new walls contained all the material of the Ottoman fortress walls.

In 1792 south metropolitan area was settled by (mostly) German migrants from Banat and Bačka (from what is now called Voivodina), creating the fourth city entity called Novi grad ("New Town").