Archaeologists in Azerbaijan have studied the period in the middle of the first millennium B.C. which laid the economic basis of later states in the area (e.g. Atropene and Caucasian Albania) and during which nomadic peoples became settled pastoralists and arable farmers. Their work has revealed the process of transformation of temporary camps into permanent settlements, confirming ancient references to ca. 30 cities in Albania, and indicates the emergence of a new culture integrating native and Iranian elements in the late 1 st mill. B.C. -early 1 st mill. A.D. Mediaeval archaeology still focusses on urban settlements, but the number of sites and the scale of investigations have increased considerably. Main concerns have been the process and problems of urbanisation and the development of crafts, trade and architecture, however use of modern scientific methods studying the mass of excavated material is expected to throw light on the genesis of the mediaeval town, its social structure.and typology and the social aspects of its craft industries.