Historically and Archaelogically, the hill of Kasteli is one of the most significant parts of the city, as it has been inhabited since Neolithic times. The factors which contributed to the uninterrupted use of Kasteli as a residential area were : its geographic position and the fertile plain on the south, both of which contributed to making the district an important commercial and transport junction. Excavations have brought to light remains dating from the first Minoan period (2800-2000 B.C.).The houses of that period are large with well constructed rooms. The walls and floors are painted with a bright red colour. The Kasteli area was also inhabited in the Post-Minoan period (1580/1550 - 1100 B.C.). According to the evidence offered by the clay tablets in Linear A scripture found on the hill, the area was reserved for royal use. Between 1380 and 1100 B.C. it developed into a commercial centre which was in constant communication with the rest of Crete and Greece.A historically significant ceramics workshop, known as "the Kythonia Workshop" has also been found in the Hania area. It now belongs to the post-royal period. During the so called Historical Years, Kythonia seems to have been a powerful city-state, whose domain extended from Hania Bay to the feet of the White Mountains. Kythonia was constantly at war with other city-states such as Aptera, Falasarna nad Polyrrinia. In 69 B.C. the Roman Consul Cointus Metellus defeated the Cretans and conquered Kythonia to which he granted the privileges of an independent city-state. Kythonia reserved the right to mint its own coins until the 3rd century A.D. The Roman conquest put an end to the civil wars and a period of peace began, unique in the history of the island. The Kythonia of the Historical Years was of the same size as the city of Hania at the beginning of the 20th century.