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Urbanization is a global phenomenon and is influenced by complex processes in the society. In Kazakhstan, the formation of towns was based on the implementation of a policy of the Russian Empire, which put in motion the processes of urbanization there. This policy was later continued in the Soviet times too. It began with the discovery of rich deposits of minerals on the sites of small Kazakh vernacular settlements, and their extraction. Gradually, these settlements turned into towns: infrastructure was built; population increased. Invariably, the living conditions of people engaged in industrial production also improved. However, at the end of the 20th century, these small towns are still experiencing a deep social and economic crisis. Although the modern independent Kazakhstan has begun to address them, this issue is still urgent. This paper examines the process of the formation of urban vernacular settlements in Kazakhstan with a case study of East Kazakhstan. The research employs archival documents containing objective information. It uses comparative historical analysis to identify the causes and reveal the processes of transformation of vernacular settlements into towns. It concludes that the emergence of some settlements in East Kazakhstan has been associated with the colonial policy of the Russian Empire. The towns are an important and inevitable part of urbanization. It is easier for the migrants and the villagers to adapt to the towns. This is because towns lack tensions and survival problems of the big cities, but retain all of their symbols and infrastructure. [ABSTRACT FROM AUTHOR]