Thalhanoe is a port city state populated primarily with elves, half-elves, and others from around the world. The city is split up primarily into two districts: The Docks and the Sanctum. Only those of Thalhanoe citizenship are allowed to live in the Sanctum, which in practice means the vast majority of the residents of the sanctum are Elves and Half-Elves, some others manage to attain citizenship through other means.
Thalhanoe is governed by the elder council, which consists of 7 members. Much of the day to day decisions are handed off to a selection of 11 chief advisors. The elders usually have preferences for what matters to take the lead on, but none have a named speciality. The 11 chief advisors are divided into Trade, Foreign Relations, Education, Arcana, Medicine, Craftsmanship, Defence, Culture, Law, Taxes, and Head Advisor.
The Halls of Eminence are where the council and its advisors meet, as well as where individual council members hold meetings with members of the public.
While the docks were historically a smaller area, the boom of naval trade led to the council separating it into a district of its own, with different set of laws and rules. This district now includes the docks themselves, and much of the space around it. They sprawl over a wide area of coastline, having grown outward rather than inland.
All of the residential areas for non-citizens are here, as well as many different businesses. Most of the wealth flowing through here comes from trading between and with ships, repairing them in the dry docks, processing imports and exports, and supplying travellers.
The Sanctum is the older part of the city, particularly taking up much of the room inland of the centre of the docks. The Elves of the Sanctum often consider themselves superior to the rest of the city-folk. The Sanctum is populated by the artisans, crafting exquisite and carefully made elven products. Armour, Weapons, Jewellery, Maps, Clothes, Glassware, Pottery, and Alchemical Potions.
The upper class of the sanctum study arcanic principles as part of a standard education. They also learn of Art, History, Culture, and Religion, and children of the upper class almost universally learn a second language
Thalhanoe is valued as a port despite it's comparatively higher taxes on trade for its near-famous security. All types of ships are welcome, including pirates and vessels of warring nations, but are expected to set aside conflict when inside the borders of the city state. Thalhanoe practices armed neutrality.
Those who have previously violated these rules are few and far between, as they have found Thalhanoe more than well equipped to enforce its rules. This security has occasionally led to Thalhanoe being an neutral meeting point for diplomatic talks.