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A large port town sitting at the mouth of the New Sea that leads into Sanction, Arl's Watch has long been an important trade location in the region. Arl's Watch has a popular and thriving harbor front, which hosts a number of taverns and inns that cater to merchants and sailors. Within the town are a number of temples dedicated to the old gods, although many were converted into businesses during the Age of Despair. On the southern edge of the town is a large fortress, from which the ruler of Arl's Watch governs his domain, and this is also where the city guards are quartered.

In the heat of the War of the Lance, the Dragonarmies claimed Arl’s Watch. The dark forces took control of the town in order to maintain the trade route to Sanction. The city guard remained loyal to their ruler Halivar Wavedancer but did not oppose the dark armies, which allowed Arl's Watch to escape relatively unscathed from both sides during the war.

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