LOL yeahhhhh 'reminds' you of black and white.... I'm convinced someone might try to sue me over how close this game is to that game LOL, going to see if I can get away with it regardless.
The circular building is the village centre and it just places the initial ring, to grow the ring you have to build houses but you also have the population to match. In this case the house currently available has 2 slots, so when you build one house and have 2 villagers available the ring will increase. If however you build a second house and don't have villagers to live there then the ring will not increase.
Should probably get a real guide written up so people understand the game better, but I'll save that for when I upload and let people play.
RE: By the gods - Fresh pre-alpha gameplay footage