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Towns grew around temples because:
1.they are administrative centres.
2.they are central to economy and society.
3.temple authorities used their wealth to finance trade and banking.
4.some people believe that if they settle near temple then the god will help them to lead a better life.
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It was because that people had a faith that if they settle near temples then the god may come to help them in times of need and they even get money which will be financed by the temple authorities leading to good economic conditions and administration.

hope it helps
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