Happiness affects villagers production rate.

There are currently four things that can increase/decrease happiness.

1. Food - Your villagers need to eat. Depending on how much food they get (you can set rations in management tab) they will gain or loose happiness.
2. heating -If there is not enough [fuel] during [winter] then their happiness will decrease
3. clothes - Villagers need to wear clothes that wear out over time.
4. alcohol - To get happiness over 75% you need to supply alcohol in a [tavern]

Secondary modifiers that can positively or negatively change happiness:

1. +2 Positive Happiness: For 180 Days, Prayers cost 20 faith; stackable.
2. Positive Happiness: For a variable amount of time based on cost, Festivals at the cost of food and/or clothing.
3. Negative Happiness: For as long as this is active, tax can produce Coins.