Under Habsburg rule, a new stone fortress was built around the city in 1723. Inside the walls houses, hospitals, schools, and churches were being raised, while outside the city factories were being opened. By the 1720 data, most of the inhabitants of the town were ethnic Serbs, and also some Romanians. Later, German, Italian, and Spanish settlers were brought in to settle in the area. The marshland around the city was reclaimed, while the rivers Bega and Temes became regulated. The city remained a military stronghold with a large garrison. This period was one of strong economic development and population increases. By 1781 Temesvár was one of the most important cities of the Habsburg Monarchy and as such it received a royal free city warrant which would accelerate the development of the city even further. Because of the Habsburg administration, Temesvár was often referred to by the German names "Temeschburg", meaning "castle ("Burg") on the Temes" or "Temeschwar", based on the Hungarian Temesvár. Temesvár was captured in 1788 and looted by Ottomans in 1789 during Austro-Turkish War (1788–1791).