Raw Materials are the basis of all things in Towns. They are used in the creation of every object in the game. There are several Raw Materials currently in Towns.
Wood is the most basic of raw materials. It is collected by chopping Trees. It is used in building walls, most buildings, and utils.
Bones are an easily accessable raw material. It is collected by slaughtering non-agressive animals, either manually by right-clicking and ordering a citizen to kill it or by queueing up bones in the production menu. They are used to construct Bone Carvers, which are themselves used in making bone armor and weapons. Additionally, it is used in making Bone Doors, Beds, and Candles.
Stone is another basic Raw material. It is collected by mining Stone(Terrain) and is used in building stone walls, some buildings, and some utils.
Coal is one of the 3 Raw Materials that you can put Mineshafts on.
Iron is another terrain that can have Mineshaft built upon it. It is used to create armour stronger than wood but weaker than things the ITE Crafter can make.
Flint is obtained by mining gravel, and is used in the creation of campfires, which can be used to cook raw meats.
Copper can be collected either by ordering citizens to mine it or placing a Mineshaft on a 2x2 group of copper tiles. It is used by the ITE Crafter when making some armour types.