Miletus is near the village of Balat, 42 kms from Söke, a county of the province Aydin. This place initially was founded during the 2nd millenium B.C. on the coast of the Latmic Gulf ( now Lake Bafa ). The town became one of the most important of the twelve cities bordering the Aegean Sea, which formed the Ionian Confederation. The Theatre, erected on the south-west slopes of the hill of Kaletepe, profiting from the natural inclination, is the best preserved building of Miletus. First erected in the 4th century BC it has taken its present form by later alterations undergone in the Hellenistic, Roman and Byzantine periods. The theatre, which could seat 5,300 spectators in the Hellenistic period, reached a capacity of 25,000 seats in the Roman period. The Caravanserai was built in the 15th century during the period of the Principality of Mente?e. It comprises a courtyard and rooms for lodging. The lower floor of the two stored building was used as stables.