Lanna, as a buffer state, provided soldiers and materials to restrain Burmese advances towards Thonburi, Rattanakosin Island and Bangkok. In 1782 Kavila brought people from Lampang to rebuild Chiang Mai. His influence spread to Chiang Rung (Jinghong), Muang Yong, Muang Sat and towns on the west of the Salaween, while he forcibly relocated thousands from Keng Tung to Chiang Mai and Lampun. Chiang Saen, Kavila's last conquest, was taken only by subterfuge and help from Nan, in 1804. Chiang Saen residents were taken to Chiang Mai, Lampang, Nan and Phrae, and their city was destroyed. Fighting continued, but the court in Ava was now too weak, and too busy trying to resist the British, to restrain Kavila. In 1782 Kavila brought people from Lampang and constructed Wiang Pa Sang, where he lived 15 years while reconstructing Chiang Mai. This period was known as "putting vegetables in the basket and people in the city". He extended the borders of the city state to reach Muang Sat, Muang Chiang Tung (Kentung), Muang Chiang Rung (Jinghong), Muang Yong and cities on the west of the Salween River. To repopulate Chiang Mai, Kavila added to those who came voluntarily, many prisoners of war. These were later given status as ordinary citizens.

Kavila brought Tai Yai, Tai Leu, Tai Khoen and Tai Yong from the Shan States, Sipsongpanna and Laos; perhaps 100,000 people to repopulate Lanna, and especially the Chiang Mai area. The city was organized as if in guilds, with areas for specialized crafts (such as Ban Tawai for wood carving, and the Bo Sang area of San Kampaeng for sa paper, umberallas, liquor, silk and celadon ceramics). Some Tai Khoen settled in Wua Lai Road, which is still renowned today for its silverwork. Those who had no craft skills were settled outside the city.

Apart from the original inhabitants and T'ai groups there were also wild 'Kha' and Burmese. Today almost fifty percent of the people living in Chiang Mai are descendants of the Tai Leu, Tai Yong and Tai Khoen; this mix makes up almost 70 percent of the Lamphun population. Ethnic groups originally established themselves in their own communities, but amalgamated over time, and came to call themselves khon muang.

The somewhat restored population reached only about 300,000 when Kavila brought the royal court back to Chiang Mai (from a camp south of Lamphun where it had stayed 22 years) in 1797. Lawa people led his ceremonial procession.

Rather than Lanna people, the citizens prefered to think of themselves as "Khon Muang" - people of the towns. A 'muang' wasn't just a town, though, but a mutually beneficial unit in which people were united by defense, trade and local society. A muang could be a city, a principality or even a country, but was usually defined by a river valley bordered by mountains. Within a Muang were many villages, some fortified and given the name-preface "Wiang." A wiang with resident senior royalty was called 'Chiang.' The rulers built and maintained irrigation systems for rice cultivation, and presided over many religious matters. "Khon Muang" regard themselves as more civilized than their mountain-tribal neighbors, but warred with those much less than they did with other rice growers (such as the Siamese to the south, who didn't have as advanced irrigation systems). The main enemies of the Khon Muang were Chinese Muslims (Haw), Indians (Kaek), Mon, Burmese, LanXang Laotians and Ngieo-Shan, their culturally similar neighbors to the north.

The ancient chronicles record many commoners appointed to rule small tributary towns; the social hierarchy was never as rigid as to the south. Between 1804 and 1810, Keng Tung, Mong Yang, Mong Yong and other towns of the Dhamma-letters culture north of the present border became tributary to Bangkok through Chiang Mai. This relationship ended due to desire for independence, and pressure from Burma.

In 1825, wars with Burma finally ceased; the Burmese now warring against the British, peace returned to Lanna. Tai Yai cattle traders began to bring Burmese knives, lacquerware, cloth and dyestuffs, fermented tea and tobacco south, and bringing back dried fish, matches, kerosene, garments and salt. From May, 1827 into 1829, Siamese soldiers supplied with American arms sacked and destroyed VianChan (Vientiane), capital of Lan Sang, and relocated its people to Isan. Lan Sang's power was done, and its area remained sparsely populated until French rule, at the end of that century. Siam opened diplomatic relations with the USA in 1833 (during the reign of Rama III).

Jungle, rice fields, hilltop temples, water buffalo and cart-paths typified Lanna. Bears, tigers and other large animals yet roamed extensive forests. Barefoot and bare-chested women, men so tattooed they looked like they were wearing more than they were, houses of wood and grass, elephants and morning trading-markets were common. There was scarce little cash money, but much personal recognition. Spiritual concerns were a big part of daily life, especially in terms of making offerings to monks and spirits. How far back the distinctive local music and dance styles go, we don't know, but the popular taste for tobacco and hot pepper is unlikely to have taken hold until sometime during Burmese control.

Ox-carts brought goods (garlic, tobacco, rice etc) to market from granaries about the countryside. Only in Chiang Mai was there a daily market; elsewhere trading days were periodic. Villages were oriented mainly to cultivation; they had no shops or distinctive houses for officials, no paved streets or central plazas. Irregular lanes wound between fenced yards around gabled, undifferentiated houses, each of which had a busy loom. Government and temples kept their own compounds. Men and women carried their ploughs or drove bullocks to fields diked and ditched by their forbearers, often starting their daily rounds in eerily beautiful morning mist. Most spent their entire lives in just a small geographic area. Only a few traveled far, though there were more long-distance traders than among the Siamese. Houses and land passed from mother to youngest daughter, young men moving after marriage to the homes of their brides' parents. The village headman's job was mostly to quell conflict and keep police and other officials away. Manufactured items began to come from Bangkok by the middle of the nineteenth century, and traditional alphabets began to be replaced by the new standard, central Thai script.