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First, by leaving indigenous local governments in place, which raised their own revenues by traditional means.

Secondly, by imposing a tax collected locally under the supervision of Persian provincial governors.

This tax was apparently very fair as, when the Greek city-states of the eastern Mediterranean were liberated from Persian rule, and had to raise money to pay for forces to guarantee their continuing freedom, it generally set the new taxes at the Persian rate.

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Q: How did the Persian rulers meet the costs of governing their empire?
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