Within Poland, there are many localities denoted as small towns. From the historical point of view, political, social and economic needs were always the prime power that impacted the foundation of towns. In order to receive the status of a town, it was necessary to initiate the procedures aiming at receiving a particular location and special municipal rights, and to get a right to perform particular administration functions. There were several factors considered to be prime power generating the creation of such units within a settlement network; those factors were: town’s defences, trade, agricultural development (private towns), industrial development, large-scale exploitation of raw materials, formation of large interchanges, spa and recreational qualities of the region where a particular town was situated. Depending on the political situation and economic climate, the position of those towns within the settlement network underwent various changes. Urbanization processes were decisive. They strongly stimulated the development, and when they ceased, the stagnation occurred and, in some case, it caused such towns to move back and to become demoted to the level of a village. Lipnica Murowana was located in the 14th century according to the German Magdeburg Law and possessed the municipal rights for more than ...