• With the intensification of agriculture, the Later Vedic people led a settled life leading to formation of territorial units.
• Lineages of clans and small kingdoms arose in several regions of the Ganga valley, leading to the creation of the state after 600 BCE. 
• People lived either in mud-brick houses or houses with wattle and daub walls. 
• The term nagara, referring to commercial quarters, is found in the later Vedic texts. However, large towns appeared only at the end of the Vedic period. 
• The sites of Hastinapura and Kausambi are considered proto urban (urban-like) settlements.

Early Vedic Religion

• Religion and rituals played an important role in Vedic society. In the Rig Veda, the natural forces sun, moon, rivers, mountains and rains were defined as divinities. The religion was naturalistic and polytheistic. Indra was the most important god and he was called Purandara. Agni was seen as intermediary between God and people. Ushas was the goddess of dawn. Aditi, Prithvi and Sinivali are other goddesses.
• Rituals were adopted as a solution to many issues and the problems of day-to-day life and thus the priests had an important role in the society.

Changes in the later Vedic Religion

• The Vedic gods Agni and Indra lost their importance. Prajapati became the main deity. Rudra, the god of rituals, identified with Siva, became important.
• Another important feature was the increase in the frequency and number of the yajna which generally ended with the sacrifices of a large number of animals. This was probably the result of the growing importance of a class of brahmanas and their efforts to maintain their supremacy in the changing society. These yajnas brought to them a large amount of wealth in form of dana and dakshina. Some of the important yajnas were – ashvamedha, vajapeya, rajasuya etc.