The Free City of Sanctuary

The leaders of Sanctuary met with the representatives of the Fey Folk at the city gates. They were greatly divided on this issue: many erdas, lycians and jakarus had suffered at the hands of Xiren's devilish children and wished them dead. Everybody knew the Fey Folk weren't to be trusted. However, Sanctuary had never refused refugees before. Furthermore, they considered Liana's warning about the Empire. The forest trolls, xenophobic and protectionist as they were, represented a threat to the Free City and its allies. If they didn't keep the trolls in check, who would?

Thus, the leaders decided to grant the refugees from the Putrid Swamp a piece of land located a few miles from the city. This marshland was not suitable for cultivation, but it was perfect for the fey. This new "haven" was called Xiren's Ward. During the following week, stoneworkers and earth mages went to work to build a wall around the grigs's new home. This was meant to protect the people inside, and not to imprison them. In fact, at all times, the Fey Folk were free to leave or enter Xiren's Ward. However, they were not allowed to go inside Sanctuary proper unless they were accompanied by a few men from the city guard. Liana was also warned armed guards would be patrolling the streets of Xiren's Ward and that they were not to be charmed or enslaved in any circumstance.

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A messenge from Sanctuary was sent to the Karthaidi trolls.

We, the people of Sanctuary, understand your reasons and feel your grief. You have acted in self-defense against the Fey Folk. You have acted in the best interest of your people, but all the nations of the world benefited from it. We will not forget this. We haven't forgotten how the forest trolls came to the aid of the erdas on the Wall many years ago, either.

However, like our allies (Aquila, Stillmoon, Thrinax, and Redunkeep, to only name a few) we are concerned about the usage of some dangerous magic devices by your leaders. We have seen what you did to the Swamp: it did some good, but left most of the land devastated. We can't say for sure if the cost was worth it. You have caused more deaths in one week than the Fey Folk in one hundred years. One thing is sure, this must never happen again. We demand that you destroy any more bombs you may have and that you cease research on this kind of weapon. To make sure that you do, we ask you to accept some of our researchers into your fold. Of course, we invite you to send your own scientists and magic-users to work here, in Sanctuary, to be taught by the world's brightest and smartest.

Lastly, you will notice that we have accepted grig refugees. Those who live in Xiren's Ward won't be allowed to participate in criminal or military activities. If we find that some of those "citizen" have been causing you trouble, we will have them leave the sacred ground of Sanctuary immediatly.
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Sanctuary is somewhat similar to the city of Ptolus, from the campaign setting of the same name. There are several factions or power groups inside, including renegades and heretics. Yet, the government is lawful and the major temples and mage academies work hand in hand with the officials to assure the security of Sanctuary's citizen.
Sanctuary officials have ways to detect charms and many of the city's leaders aren't affected at all by charms and compulsions (because they are disguised undead or simply possessed by a spectre ).