The Lateran Treaty in 1929, which brought the city-state into existence, spoke of it as a new creation (Preamble and Article III), not as a vestige of the much larger Papal States (756–1870) that had previously encompassed much of central Italy. Most of this territory was absorbed into the Kingdom of Italy in 1860, and the final portion, namely the city of Rome with Lazio, ten years later, in 1870.
The Popes have generally resided in the area that in 1929 became Vatican City since the return from Avignon in 1377, but have also at times resided in the Quirinal Palace in Rome and elsewhere. Previously, they resided in the Lateran Palace on the Caelian Hill on the far side of Rome from the Vatican. Emperor Constantine gave this site to Pope Miltiades in 313. The signing of the agreements that established the new state took place in the latter building, giving rise to the name of Lateran Pacts, by which they are known.
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