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The palace of the Hasmoneans was located on the Western side of the Upper City. It contained a roof called the Xystus with where the people in the large square below could be addressed. It had large courts, living quarters, baths, and a service court.
"Hasmonean Jerusalem featured two major landmarks of which no remains have been found. One of these was the Hasmonean Baris, a citadel which is thought to have stood at the northwestern corner of the Temple Mount, occupying the probable site of the earlier Ptolemaic Baris and which was later demolished to make room for Herod's Antonia Fortress. According to Josephus "this citadel was built by the kings of the Asamonean race, who were also high priests before Herod, and they called it the Tower, in which were reposited the vestments of the high priest, which the high priest only put on at the time when he was to offer sacrifice." Herod's construction of the Antonia left no trace of the Hasmonean citadel. The other notable structure researchers have been trying to locate is the Hasmonean Palace. Josephus' description is quite precise: "over the gallery, at the passage to the upper city, where the bridge joined the Temple to the gallery." It is quite possible, therefore, to locate the approximate position of the palace, in front of the Temple slightly north of the modern Jewish Quarter. This location would make both topographic (on a lofty spot) and administrative (adjacent to the wealthy and priestly quarters in the upper city) sense. Overlooking the Temple, it would provide the king and high priest an observation point into events there within." - Wikipedia
"Whoever has not seen Jerusalem in its splendor has never seen a fine city."? Babylonian Talmud (Succah, 51b)
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Primary Sources for the Study of First Century Jerusalem: Josephus, The Mishnah, The New Testament, Pliny.
The Jerusalem of Herod the Great
The Jerusalem Jesus knew nowhere near resembled the city David conquered in the tenth century BC. At that time, it had been a small, isolated hill fortress, valued more for its location than its size or splendor. Yet from that time on it was known as the City of David, and the kings of David's dynasty, especially his son Solomon, had enlarged and beautified it.
In the sixth century BC, the army of Nebuchadnezzar leveled Jerusalem and drove its citizens into exile. During the long years of captivity in Babylon, the Jews in exiles' prayers and longings focused on the distant Holy City. But the city rebuilt by the Jews who returned a century later was far inferior to its former splendor. It was, ironically, the hated tyrant Herod the Great who restored Jerusalem to its former grandeur.
In the 33 years of his reign (37-4 B.C.), Herod transformed the city as had no other ruler since Solomon. Building palaces and citadels, a theatre and an amphitheatre, viaducts (bridges) and public monuments. These ambitious building projects, some completed long after his death, were part of the king's single-minded campaign to increase his capital's importance in the eyes of the Roman Empire.
No visitor seeing Jerusalem for the first time could fail to be impressed by its visual splendor. The long, difficult ascent from Jericho to the Holy City ended as the traveler rounded the Mount of Olives, and suddenly caught sight of a vista like few others in the world. Across the Kidron Valley, set among the surrounding hills, was Jerusalem, "the perfection of beauty," in the words of Lamentations, "the joy of all the world."
The view from the Mount of Olives was dominated by the gleaming, gold-embellished Temple which was located in the most holy spot in the Jewish world and really God's world. This was the Lord's earthly dwelling place, He mediated His throne here and raised up a people to perform rituals and ceremonies here that would foreshadow the coming of His Messiah kinsman redeemer who would be the lamb of God, slain for the sins of the whole world.
The Temple stood high above the old City of David, at the center of a gigantic white stone platform.
To the south of the temple was THE LOWER CITY, a group of limestone houses, yellow-brown colored from years of sun and wind. Narrow, unpaved streets and houses that sloped downward toward the Tyropean Valley, which ran through the center of Jerusalem.
Rising upward to the west was THE UPPER CITY, or Zion, where the white marble villas and palaces of the very rich stood out like patches of snow. Two large arched passageways spanned the valley, crossing from the Upper City to the temple.
A high, thick, gray stone wall encircled Jerusalem. It had been damaged, repaired and enlarged over the centuries, and in Jesus' day it was about 4 miles in circumference, bringing about 25,000 people into an area about a square mile. At intervals along the wall were massive gateways. Just inside each gate was a customs station, where publicans collected taxes on all goods entering or leaving the city.
? Bible History Online (http://www.bible-history.com)
City of David (Tomb)