The Goreme Valley was formed by a huge volcanic eruption which covered a vast area with soft volcanic rock, known as tufa. Subsequently, a layer of harder rock was laid down, and differential erosion formed a strange, unearthly landscape with steep gullies, and peaks described in the tourist guides as "fairy chimneys", though for the casual observer a more phallic name may occur to mind.
A typical landscape in the Goreme Valley
Over the centuries, the inhabitants have carved into the soft tufa to create dwellings for themselves, in the sides of cliffs, in "fairy chimneys" and large rock outcrops, and even, such as in Kaymakli, underground cities, up to seven levels deep and stretching for miles under the ground.
References:
1. de Jephanion, G.
Les Eglises Rupestres de Cappadoce Librarie Orientaliste Paul Geuthner. Paris,1932
The isolation and solitude of central Kappadokia was an ideal environment for those who wished to get closer to God, and under the Byzantine Empire many monasteries and nunneries were carved out of the rock. As well as these a large number of churches were created, and their interior walls covered with murals.
The Goreme Valley
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"Fairy Chimneys"