Between the sixth and the tenth century, India passed through a new phase of urbanization. This has been identified as the third urbanization in India, setting it apart from two earlier phases. The focus of historical investigations for this period has generally been on capital cities and royal centres, or centres of pilgrimage. Port cities have also received some attention. There are no exclusive studies on unplanned cities from this period other than the overview that a few historians provide. In this article, I am focusing on one of them, Sīyaḍoṇi in central India, in order to understand how urban centres developed in this period without being royal centres, places of pilgrimage or hubs of maritime trade. I propose that Sīyaḍoṇi emerged as a merchant town on an important trade route and its commerce-centred economy was reinforced by deep-seated practices of rent-seeking involving generation of income through ground rent, taxation and interest on loans.