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The area on which Prague was founded was settled as early as the Paleolithic Age. Around 200 BC the Celts had a settlement in the south, called Závist, but later they were replaced by the Marcomanni a [[Germanic peoplethe Eurasian Avars. According to a legend, Prague was founded by Libuše and her husband, Přemysl, founder of the dynasty with the same name. Whether this legend is true or not, Prague's first nucleus was founded in the latter part of the 9th century as a castle on a hill commanding the right bank of the Vltava: this is known as Vyšehrad ("high castle") to differentiate from another castle which was later erected on the opposite bank, the future Prague Castle.
Under emperor Otto II the city became a bishopric in 973. Until Prague was elevated to archbishopric in 1344, it was under the jurisdiction of the Archbishopric of Mainz. Soon the city became the seat of the dukes and later kings of Bohemia.
It was an important seat for trading where merchants coming from all Europe settled, including many Jews, as recalled in 965 by the Jewish merchant and traveller Ibrahim ibn Ya'qub. The Old New Synagogue of 1270 survives.
King Vladislav II had a first bridge on the Vltava built in 1170, the Judith Bridge, which crumbled down in 1342.
In 1257, under King Otakar II, Malá Strana ("Lesser Quarter") was founded in Prague in the future Hradčany area: it was the district of the German people. These had the right to administrate the law autonomously, pursuant to Magdeburg Rights. The new district was on the opposite bank of the Staré Město ("Old Town"), which had a borough status and was defended by a line of walls and fortifications.
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