Toledo is located in the central plateau of the Iberian Peninsula, inmediately north of the Tagus river, in the border between the Kingdom of Castille and the Almohad Caliphate.
Toledo produces large quantities of tools, dyes and bread, significative amounts of ale, wine and hides, and other valuables depending on its nearby villages.
Toledo was originally a celtiberian fortified settlement, conquered by the romans in the early II century BC and renamed Toletum shortly after. An important enclave during the peak of the roman civilization, when the Western Empire collapsed it fell into the hands of the Alans, then into the Visigoths' in 418 AD. King Leovigild turned it into the capital of his Visigothic Kingdom of Toledo (which comprised all of Iberia), and so Toledo became the greatest hispanic city for about two centuries.
During the muslim conquest of Hispania in the early VIII century, Toledo was captured by berber general Táriq ibn Ziyad and later evolved into an important population center of the Emirate of Córdoba. However, Toledo's tendency to rebel caused trouble for the cordobese emirs, until Abd al-Rahman III (first Umayyad Caliph of Córdoba) stormed the city and put an end to the riots in 932.
After the Caliphate disintegrated in the XI century, Toledo became the capital of its own taifa kingdom, but was slowly falling into the orbit of Castille until King Alfonso VI of Castille and León conquered it in 1085. Toledo was turned then into Castille's capital and began its period of greatest cultural, economic and politic splendor.
In 1162, during Alfonso VIII's minority, the city was conquered by Fernando II of León and remained in leonese hands until 1166, when it was finally regained by the castillians.