Babylonia was situated in the area known as Mesopotamia which means "between the rivers" in Greek. This area was in the Near East in roughly the same geographical position as modern Iraq. Two great rivers flowed through this land: the Euphrates and the Tigris. Along these two rivers were many great trading cities such as Ur and Babylon on the Euphrates.
Babylonia is placed on a flat plain and the Tigris and Euphrates rivers flow through it. Their course flows from Anatolia and Syria to the Persian Gulf. Mountains surround the East and North sides of the plain, the Zagros chain and Kurdistan, and the Syrian and Arabian deserts are in the west and south.
The development of civilization in the area was fueled by the existence of the Euphrates which was a perfect place for trade. To the north they could trade up the river to Syria and beyond and could be place with the cities of Sumer to the south. It became a large city full of economics benefits with lots of merchants and tradesmen, so that many people felt attracted to live there.