It formed by their were people in a war and because they did not want to have anymore wars they had 2 people from each district come and fight till the death. There would be only one Survivor left. But until the end of Hunger Games Peeta and Katniss won. In mockingjay they have a war and the districts win over the capital.
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There aren't towns in The Hunger Games, only Districts which act as States or Countys, Panem is the country and the capital of Panem is The Capitol.
Yes Panem is made of the 13 districts
Panem is the future ruins of North America. Panem is divided up into 12 districts, and the Capitol, which is where the wealthy live. It is stated in the book that there used to be a 13th district, but President Snow said they blew it up because the district attempted to rebel against the Capitol. Panem is the setting for The Hunger Games.
The Hunger Games takes place in a futuristic North America that has been torn by wars called Panem. There is a Capitol and thirteen districts. District thirteen is said to have been distroyed though because of a rebellion. The rebellion is the reason for the hunger games too.
It is revealed in the third book, Mockingjay, that most of them come from District 2 as well as the Capital