How did the land of the Teutonic knights work?

To secure its conquests, the Oder founded around 100 towns and over 1,000 villages by attracting Christian, mostly Low German settlers, and offering special privileges. They cleared forests, drained swamps and introduced modern agricultural and craft techniques.

Most towns were granted the Culm law, a modern law which made extensive self-administration possible. The Order and many of its towns enjoyed the privileges of the Hanseatic League. They mainly exported wood, grain and amber and served as the interface of trade between the west (salt, cloth) and the east (wax, honey, skins). Trade was promoted through largely uniform measures and coins as well as good transport routes.

The country was divided into "commandries". Superordinate interests were regulated by the Grand Master and his "Gebietiger" (high officers) as well as by the convent of the Order. Since friars were not allowed to marry, the rule over castles and estates always reverted to the Order. 

 

Illustration:
Photo of a large mill from the time of the Order
The "Great Mill" of Gdansk
The Order had the 7-storey mill built around 1350. With its 12, later 18 millwheels it was considered the largest mill in Europe. Mill and oven were functional until 1945. Up to 200 tonnes of grain were ground every day in the time of the Order and provided bread for the entire city of Gdansk.
Photo: Andrzej Otrębski, Wikipedia Creative Commons Licence