From the dwarven codex "Beyond the Mountain" by Goralken'dekr, a dwarven member within the Council of Nine.
 

Under the looming shadows of the Greycloak Mountains stands Zilgarr; a picturesque Dwarven lumber village, set against the dark, menacing backdrop of the vast leafy green sea known as the Dire Woods.

If a traveler were to look down on Zilgarr from the lofty reaches of the Drimlok Pass, they would see the thatched roofs of the quaint Dwarven village staring up at them, small chimney stacks puffing out streams of smoke. Unlike the other places in Garr, the town is not walled, but scattered lazily about the edges of the forest, with most of the industries concentrated along the north and eastern sides of the town, closest to the forest.

The artisans of Zilgarr
Ruled over by the head of a rich Dwarf clan, Bhrian Kaldaragnar, this smallish town is used by woodsmen, smiths and many other trades. There are also a few human farmers here, growing crops over land already cleared by deforestation. Trees are cut down here and taken to the mills on the outskirts of the town, where they are cut up into planks and logs to be used in construction and weapon crafting, as well as firewood for the various furnaces and smithies across Garr. The leftover scrap wood is then carted over to the paperworks, where they pulp it and churn out around a ton of paper a week. These goods are traded in Korgarr for rarer, more exotic items, as well as necessary items such as metal and livestock. Dwarven ale is also shipped over the mountains from Dirgarr, and there is always a regular demand for it here, for such is the way of Dwarves.

Enough ale for all!
The only tavern in Zilgarr is the “Drunken Dwarves” Inn. It is owned by a popular human called Aron Stellis. He doesn’t have any racial preferences, and all are welcome to stay at the Inn, though he always keeps one eye on the money stash at all times whenever goblins are in town, though they are rarely seen here, such are the hardships of the Drimlok Pass during the winter months.

It may be the only tavern in Zilgarr, but it certainly isn’t lacking in room, with no less than fifty guest bedrooms, and one custom built for VIPs. Most of the locals frequent the place, as well as the many adventurers who come down from the mountains, just to say that they had been to the northernmost settlement in the known lands, and to brag about it when they returned home. A few came to traverse the forest, to seek out the legends which shroud the ancient wood. None have so far returned, though the small guard house, manned by three dwarves and two humans, near the very edge of the forest, keeps watch for such an occasion, and any other incident which might require their services.

The mysterious Dire Woods:
The legends tell of evil trees and strange humanoid creatures, flitting through the dark green world under the canopy of leaves, watching with pale yellow eyes. They also tell of this strange old man leaning heavily on an old oaken staff bound with peculiar silver markings, who was once seen walking through the forest by a band of prospecting dwarves. They called out to him and he looked briefly up at them, before fading from their sight. The dwarves, disliking most forms of magic, or what they perceived to be magic, fled at the sight and returned to their homes, telling what they saw. Few expeditions were launched after that, and those that did not often returned.

Clan leader
The town’s ruler, Bhrian Kaldaragnar, lives in a large house just outside the village proper. The house itself is constructed of the grey building stone, crafted by the stone masons in Korgarr and transported down the Drimlok Pass to the village. There is a wooden stockade surrounding his dwelling, and dwarven guards stand to attention at it’s gates twenty four hours a day. Bhrian has ruled the town for three hundred and fifty two years, taking over from his father, Thangror Kaldaragnar, who founded the town when he discovered the Drimlok Pass by accident after being trapped in a snowstorm. Bhrian often travels up to Korgarr to consult the King on certain matters, or whenever a Clan Gathering is called.

Entertainment
The town also hosts the “Dwarf Throwing” competition each year in the summer, and it is this very town where the popular sport was invented. The Dwarves who live in Zilgarr are easy going and don’t take offense at the name, and many even join in with the festivities, though real dwarves are no longer thrown, with weighted dummies being used in their place. Still, the event is popular, drawing people from all over Telgard to the town and all the rooms at the “Drunken Dwarves” Inn are always fully booked in advance.

All travelers should be aware upon entering the town that the laws are strictly upheld, and anyone found breaking them will receive a lengthy spell in the town’s prison, or at the least a hefty fine. On the whole, the place is a pleasant place to stay, the locals friendly and helpful, with little violence and civil disorder except occasionally during the “Dwarf Throwing” contest.

Although not technically in the mountains, the town of Zilgarr still maintains strong ties and a healthy trade with the rest of Garr, particularly Korgarr, and Bhrian has always recognized the sovereign rule of King Dirgot.