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Town Hall

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The Town Hall is the administrative center the city.  Here, players modify Production, Tax Rate, Comfort, and Levy parameters. Each upgrade of a city's Town Hall increases the number of valleys a player can conquer. Upgrading a Town Hall also increases a city's resource fields by three. Every city begins with a Level One Town Hall.

According to the quest guide, the Town Hall is the administration centre of a city. While you upgrade it, the efficiency of constructions is enhanced at the same time.  Please note that every upgrade of Town Hall allows you to conquer one more valley, and three extra resource fields are provided. Furthermore, the limit of gold reserve will also be increased. (This is an interesting fact that might be useful to know!) ...

Also note that the Town hall level affects the view of your city on the map.  Levels 1-3 is a "village", level 4-6 is a "town", level 7-9 is a "fort", and level 10 is a "city".