Requirements: Level 2 Spirituality, A Dead Villager
Action: If there are bones in the center of the map, drop a villager in the peaceful area at the top right of the map to create the cemetery. After the party, the villagers will automatically carry the bones to the cemetery. They will continue to burry the bones in the future but only when you are watching. If some villagers die when you are not playing then the others will wait until you get back before collecting the bones. I guess they don't want you to miss the funeral. You can click their stone to see their name, job, and age.
Description: "Using their enhanced spirituality, your villagers designed an appropriate resting place for elders and others who have passed on to the next life."