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I was reading the rules yesterday and then double checked with the order entry system. My understanding is that ships/fleets must be bought requiring a Port. Ports require a few other buildings, it must be in a town or city and must be coastal. Does that mean that if only villages are coastal on a sea there is no opportunity to build more ships then people start with?
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Ah, seapower, likely the most confusing part of the game!
Fleets may be purchased if you control any PC that is 1) Adjacent to a sea (marked as coastal) or 2) is within the sea. For example, a village at ON would allow one to build fleets within both Tempest and Azure seas. You may build fleets up to (I think) quality 13 without building a Port (see below).
A Port is a building and may be built at a coastal town or city, so a village will not work. This allows you to get above quality 13 in the relevant seas.
So to sum up, any coastal or "island" pop center will allow you to build fleets (up to quality 13). A Port (the building) is only needed if you want to build fleets above quality 13.
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