Teristraz rises on the storm-lashed northern coast of Kildar, south of the ruins of the dwarven hold of Rhyl and near the edge of the frozen north. Once the first human city in Kildar and briefly the capital under Sova Medvedov and her successor, it remains deeply shaped by the memory of the chieftess who led humanity across the sea. Her statue still watches over the Harbor of Bones, where fishing boats, merchant vessels, longships, and monster hunters crowd the docks.

For centuries, Teristraz was defined by its fierce maritime traditions. Its sailors were pirates, fishermen, and hunters of sea monsters, and citizenship was once tied to surviving the city's brutal rite of passage. Much has changed since the Crimson Dusk ended the Medvedov line. The arrival of the Lords' Alliance has made everyone a recognized citizen of Kildar, ending the old distinction between citizens and "landcrabs." The rite of passage survives, but now marks entry into Teristraz's prestigious and largely self-governing sailor class rather than granting political rights.

The Alliance has also transformed Teristraz into an increasingly important trade hub. Its sailors are paid to hunt the growing numbers of sea monsters threatening Kildar's waters and serve as privateers abroad, while the new road to Ironhold has brought merchants, refugees, and workers to the city. Wool, fish, dyes, pearls, minerals, and exotic goods now flow through its harbor alongside more questionable merchandise from Eir-Andusk.

Yet Teristraz remains divided. Some embrace the prosperity brought by the new order, while others cling fiercely to the independence of the old days. Former pirates have split between those serving the Alliance, those who continue raiding from hidden coves, and those secretly aiding its enemies. Even the Alliance does not fully trust the city. Beneath its growing prosperity, old loyalties, hidden druids, and secret agents of the Eldritch Inquisition ensure that Teristraz's turbulent history is far from forgotten.