The collapse of the Central and Eastern European empires after the First World War gave rise to a number of new republics. Traditional provincial capitals were given new functions, and imperial capitals were transformed into republican centres.
In this context, Prague received a powerful impetus for its new growth. At the same time, however, it had to cope with the challenges of completing the infrastructure for the administration of the republic as well as the background of a fully-fledged political and representative centre of the new state.
This also entailed a radical development of the city, both on the basis of urban innovation (the creation of new districts and the creation of concepts for the whole city) and with regard to the modernisation of the historic districts. Both the Prague City Hall and, of course, private companies contributed to the expansion of the city's infrastructure and construction.
The successful cooperation was reflected in the unique dynamics of the growth of the territory and population. This dramatic rise also required the systematic building of comunal administration and municipal enterprises.