Most peasants, free and serf, lived in family groups in small villages. One or more villages and the land surrounding them made up a manor controlled by a noble lord or a church official. Most villages had a church. In some villages, the lord’s large residence was right next to the small peasant houses, while in others the lord lived in a castle or manor house separate from the village. Manors varied greatly in size; some contained a number of villages, and some were very small.

The arable land of the manor was divided between the lord and the peasantry, with the lord’s portion known as the demesne (dih-MAYN). The manor usually also held pasture or meadowland for grazing livestock and often had some forestland as well. Forests were valuable resources, providing wood, ash, and resin for a variety of purposes.

Lords generally appointed officials to oversee the legal and business operations of their manors, collect taxes and fees, and handle disputes. Villages in many parts of Europe also developed institutions of self-government to handle issues such as crop rotation, and villagers themselves chose additional officials. Women had no official voice in running the village, but they did buy, sell, and hold land independently, especially as widows who headed households. In areas of Europe where men left seasonally or more permanently in search of work elsewhere, women played a larger decision-making role, though they generally did not hold official positions.

Manors did not represent the only form of medieval rural economy. In parts of Germany and the Netherlands and in much of southern France, free independent farmers owned land outright, free of rents and service obligations. In Scandinavia, the soil was so poor and the climate so harsh that people tended to live on widely scattered farms rather than in villages.