There are 4 villages in every City, where you will be able to construct buildings after you developed the Main Building to the maximum level, opened the Gate and studied the "Villages" science.
Producing Buildings in villages work 30% faster (the Village Bonus) than those constructed inside the City Wall. However, your closest neighbours in the Kingdom can claim the villages too.
EXAMPLE: On the picture the City on the square 14 (New City) has common Villages with the City on the square 6 (Knightcity)
The City on the square 14 (New City) shares the other Villages with squares 4, 5, 6, 13, 15, 22, 23, 24.
EXAMPLE: Buildings of the Player who owns City on the cell 6 (Novaya Rudnya) are shown in red colour for the Player whose City is on the cell 14 (New City).