Mechanically active cells in soft media act as force dipoles. The resulting elastic interactions are long-ranged and favor the formation of strings. We show analytically that due to screening, the effective interaction between strings decays exponentially, with a decay length determined only by geometry. Both for disordered and ordered arrangements of cells, we predict novel phase transitions from paraelastic to ferroelastic and anti-ferroelastic phases as a function of Poisson ratio.Predicting structure formation and phase behaviour from the microscopic interaction laws is a formidable task in statistical mechanics, especially if the interaction laws are long-ranged or anisotropic. In biological systems, the situation is further complicated because interacting components are active in the sense that informed by internal instructions (e.g. genetic programmes for cells) and fueled by energy reservoirs (e.g. ATP), they react to input signals in a complicated way, which usually does not follow from an energy functional. Therefore these systems are often described by stochastic equations [1,2]. One drawback of this approach is that typically the stochastic equations have to be analyzed by numerical rather than analytical methods. However, for specific systems structure formation of active particles can be predicted from extremum principles. In this case, analytical progress might become feasible again, in particular if analogies exist to classical systems of passive particles. One example of this kind might be hydrodynamic interactions of active particles like swimming bacteria [3]. Here this is demonstrated for another example, namely mechanically active cells interacting through their elastic environment [4,5].Our starting point is the observation that generation and propagation of elastic fields for active particles proceed in a similar way as they do for passive particles like defects in a host crystal, e.g. hydrogen in metal [6,7]. For a local force distribution in the absence of external fields, the overall force (monopole) applied to the elastic medium vanishes due to Newton's third law [8]. Therefore each particle is characterized in leading order of a multipolar expansion by a force dipole tensor P ij . For many situations of interest, including cells in soft media, this force dipole will be anisotropic and can be written as P ij = P n i n j , where n is the unit vector describing particle orientation and P is the force dipolar moment. The perturbation of the surrounding medium resulting from a force dipole P ′ kl positioned at r ′ is described by the strain tensor u ij ( r) = ∂ j ∂ ′ l G ik ( r, r ′ )P ′ kl , where summation over repeated indices is implied and G ij is the Green function for the given geometry, boundary conditions and material properties of the sample. The strain u ij generated by one particle causes a reaction of another particle leading to elastic interactions. The essential difference between active and passive particles is that cells respond to strain in an opposite way as do defects. ...