This position has ensured Daggerfall's success in trade in early and middle First Era. However, it's most known for conflicts with such Iliac Bay cities as Orsinium , Wayrest , and Sentinel. South of Daggerfall lies the small island of Betony , which caused a great war during the Third Era.
The city of Daggerfall is a walled city. Castle Daggerfall is located in the northeastern part of the city. The main street stretches from the Castle to the southern city walls.
The city cemetery is located in the southwestern part of the city. Knights of the Dragon , the knightly order of Daggerfall, have two garrisons in the city — one to the east and one to the west of the main street, both of which are located in the northern part of Daggerfall. A market with a bank, a weaponsmith, an armorer, a general store, an alchemist, a clothier, a bookstore, and three taverns is located in the very center of the city, a bit west of the main street. The Temple of Kynareth is located in the center of the city, west of the market.
It is improper, however customary, to refer to the denizens of the dimension of Oblivion as "demons. It is most probable that "daimon" is a misspelling or etymological rendition of " Daedra ," the old Elven word for those strange, powerful creatures of uncertain motivation who hail from the dimension of Oblivion.
But the written record is not, after all, the best way to research Oblivion and the Daedra who inhabit it. Those who "trafficke with daimons" seldom wish it to be a matter of public account. Nevertheless, scattered throughout the literature of the First Era are diaries, journals, notices for witch burnings, and guides for Daedra-slayers.
These I have used as my primary source material. They are at least as trustworthy as the Daedra lords I have actually summoned and spoken with at length. Apparently, Oblivion is a place composed of many lands -- thus the many names for which Oblivion is synonymous: Coldharbour , Quagmire , Moonshadow , etc.
It may be correctly supposed that each land of Oblivion is ruled over by one prince. The southern half of the city is the Trade District, which holds many business, trading stalls and the Southern Docks, where passage by ship to Betnikh and Stros M'Kai can be arranged. The northern half is Castle Town, which contains The Rosy Lion inn, guildhalls, one of the city's two stables and a number of homes, as well as the main gates.
In the northwest is the Harbor District which contain the main docks of Daggerfall, while Castle Daggerfall overlooks the city on a hill in the west of the city. Daggerfall was initially founded around the year 1E by invading Nords from Skyrim during the Skyrim Conquests , bringing with them a rough civilization.
Numerous legends surround how the Kingdom of Daggerfall got its name. One of such rumors says that the first chieftain threw a dagger and let the spot where it fell act as the border. Skyrim did not hold the city for long, and only held control for about a century before the War of Succession made Skyrim lose all of its territory in the other provinces of Tamriel.
However, Daggerfall thrived under Nordic rule and thus had an advantage over its neighbors upon independence. The kingdom became a powerhouse for the Nedic Direnni Clan , but still continued to thrive even after the clan lost power in High Rock after the Battle of Glenumbra Moors. By 1E , under the rule of King Thagore , Daggerfall was the main economic, cultural, and military force in High Rock, and it remained so for millennia until the city of Wayrest eventually surpassed it.
They began a fifty-seven day siege at Wayrest, before eventually being driven out. They instead assaulted Daggerfall, but were met by the armies of Wayrest.
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