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 The Lost Valley (by Joshua Jarvis)

In the Hinterlands, just past the gate town of Xaos, lies what is commonly called the Lost Valley. This is because things lost (both literally and figuratively) often end up here. A mystical city lies here, very few people are let into it and rumour has it that advanced magic runs much of the city. What is known is that the lost souls that live here are the last remnants of some lost civilization. Apparently the Lost Valley was once only a place where things that were misplaced occasionally appeared (a lot of luggage, socks, and hair). That was true until the mystical city in the prime started to fall. The mystical and psionic effects maintained by the king were twisted as the king slowly was losing his sanity.

Taking the idea of the legendary "lost realm" a bit literally these clueless actually managed to send an entire city into the planes. Here their belief in finding his lost mind changed the nature of the realm. Now lost marbles, lost battles, and lost causes are just as likely to appear as stuff literally lost. Of course most lost stuff doesn't appear here anyway, it's just misplaced, but every so often a portal appears taking missing items here. Well, the chant goes that the city is now in the Outlands and the king has still lost his marbles but the dark isn't truely known. It's suspected that this realm has several sects that follow lost causes however.