Feypoole

Feypoole is home to El Nido's fairy population. The fae act as guardians over the springs of pure water that well up all over the island. The springs of Feypoole are an important source of fresh drinking water for many of the islands, but because of the way the Water Dragon Island's magic works, the fae must give their permission in order for any of the water to be taken off the island. This puts the fae into a great deal of economic power that they are generally too childlike to appreciate or take advantage of -- which is both a blessing and a curse to those who come from other islands to trade with the fae for their water.

A minority population of dwarves live on Feypoole. They are largely politically disenfranchised and generally a grumpy lot; they believe that they could do a much better job at managing the island and its vital natural resource, but so long as the fae retain the governorship (and the Water Dragon's blessing), the dwarves will just have to keep on stewing in their own little swampy corner of the island.