Location here means (historically) establishing a city and granting it appropriate rights. In Poznań, the lack of space on the grad on Ostrów Tumski (Cathedral Island) and the adjoining settlement in what is now Zagórze necessitated finding somewhere else to settle. It was decided to establish a city on the left bank of the river on new principles – Magdeburg rights (German town laws). These laws were applied when founding new cities in Poland from the early 13th century. Information regarding the location of Złotoryja, Lwówek Śląski and Wrocław has survived. In Wielkopolska, Gniezno (1238), Powidz (1243), Międzyrzecz (before 1248) and Kostrzyn (1251) were all located before Poznań.
The locator, i.e. the representative of the founder and the superior of the city, was Tomasz of Gubin, who also became the first vogt (something like an English reeve) of Poznań. The inhabitants of the new city were free of obligations to the authorities for a period of eight years. They were only subjected to customs, taxation and other burdens once they had settled in to the new place.
A marketplace whose sides measured 141 m was demarcated (the third largest in Poland after Cracow and Wrocław) and the entire city covered 21 ha. The town hall was intentionally moved a little to the side of the marketplace, in the direction of ul. Wielka. Conducting trade and commerce and creating conditions conducive to the development of local handicrafts was one of the most important tasks of the city. The dukes and founders therefore undertook to build a cloth hall.
Poznań soon prospered thanks to its prime location on important trade routes. It was royal property and the seat of the General Starosta of Wielkopolska.