The Lydians established a powerful state in western Anatolia that was centered in the basin of the Gediz (ancient Hermus) river and they had already become active in the valley of the Menderes by the 7th century B.C. It is known for example that King Gyges of Lydia ruled Magnesia on the Maeander (near present-day Ortaklar) and that in the 6th century B.C., King Alyattes rescued Orthasia (near present-day Yenipazar) from the marauding Cimmerians.
The most outstanding Lydian king however was Croesus and it was during his reign (560-546 B.C.) that Lydia experienced its brightest period. Under the protection and careful watch of Lydia, the city-states of Ionia and Caria grew and prospered, though in return for this they had to pay a hefty price to King Croesus.
The city of Tralles (modern Aydin) was a distribution and transit center where goods coming from Caria, Cilicia, Syria, Persia, and farther east were collected and from which they were sent to Aegean seaports. At the same time, olives, figs, raisins, acorns, and other produce from the valley of the Maeander were shipped from Miletos harbor to Greece, Italy, Phoenicia, and Egypt. Lydia became extraordinarily enriched due not only to its own resources but also to the taxes it collected and it can hardly be a coincidence that it was the first country in the world to mint a standardized and widely-recognized coinage.