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"What Purpose, Nobility?"

-An excerpt from What Purpose, Nobility? A Treatise by Quillian Inkenpot, Historian
  Among all the cities in Faerun, Waterdeep lays claim to a singularly unique form of governance that sets it apart from the other civilized city states. The Masked Lords of Waterdeep govern in what is technically a cryptocracy, or “rule in secret.” The body of people who make the laws for Waterdeep are not publicly known as such and instead meet in secret with their identities masked by magical Helms. The only Lord of Waterdeep whose identity is known publicly is the Open Lord, a position currently held by Laeral Silverhand. The Open Lord is the single person in Waterdeep who knows the identity of the Masked Lords, because he or she is the person who appoints them.
  When Lord Ahghairon founded Waterdeep in the year 1032 following his defeat of the Warlord Rhaulor, he established himself as the first Open Lord and chose a number of Masked Lords from amongst people of all walks of life from noble to beggar, merchant to artisan. He did so in order to make sure that all of the people of Waterdeep had a voice in it’s rule, but he also masked their identities so that no Lord would ever be able to use their influence for personal gain. This unique rule of law is what has made Waterdeep the City of Splendors it is today. When all of our citizens know that someone from all stations in life have a voice on the council that makes the law they can rest easy knowing that their interests are being represented.
  This also means that the noble families of Waterdeep are not directly involved in the ruling of the city, unlike in other cities like Cormyr or Baldur’s Gate where a monarch is appointed from amongst a noble family or families. They also do not hold the reins of the economy, though they do represent powerful trade forces with their enormous wealth. The various Guilds of Waterdeep are the bodies that regulate trade and production. There are, of course, nobles in the ranks of the Guilds, so the two factions are by no means completely separate.
  What then preserves the special place Waterdeep reserves for its noble families? Among other privileges, the noble families are granted the right to garrison small armies for their disposal. The answer to that lies beneath your very feet, student Magisters. The very land that holds our magnificent city is held on land owned almost entirely by the nobles Families of Waterdeep.
  The noble families of Waterdeep claim histories that stretch back to the founding of the City of Splendor. Some even from before. Before Lord Ahghairon defeated the Warlord Rhaulor and established Waterdeep as a civilized city it was a settlement called Nimoar’s Hold, so named for a barbarian chieftain that conquered the small village. Power changed hands through conquest and violence until our Lord Ahghairon established Waterdeep and the rule of law. He did not do it alone, however, and the people who helped him end Rhaulor’s rule became the heads of the first noble families of Waterdeep. Some of them were those Lord Ahghairon enlisted to aid him, while others were those families already in Waterdeep who grew tired of the endless violence and saw that Lord Ahghairon promised a better way of life.
  In the centuries that followed, Waterdeep grew into a major force on the Sword Coast and the preeminent city in all of Faerun. People’s from all corners of Toril are drawn here by our wealth of culture, helping to further the growth of the City of Splendors to what it is today. And in those centuries the Noble Families have remained relatively unchanged. A few have died out and a handful of titles have changed hands, but for the most part those same families still own the land that Waterdeep rests on, with the exception of public buildings and thoroughfares that are managed by the office of the Open Lord.
  Because they are the true owners of all the land Waterdeep rests upon, the noble families are accorded those rights due lords of the land. The right to a standing army is afforded them in order to protect their property and a special portion of all rents and taxes are distributed to the noble families by the office of the Open Lord.
  Now of course since the ownership of this land is extremely valuable, it behooved Lord Ahghairon and the noble families to establish a way to record and prove lineage and that is where the Deeds come in. Each noble family has a Deed proving the ownership of their portion of the land as well as establishing inheritance rights. Deeds are magically protected contracts that are some of the most highly guarded artifacts that any noble family owns. Within those documents are accounts of the exact acreage that a noble family may lay claim to as well as the names of all recognized members and heirs of the family, all magically protected from damage and falsification. An important ritual for noble families occurs when, during a marriage or a birth, a new member of the family is officially recognized and scribed into the family’s Deed. The office of the Open Lord has a directory of Deeds and the current High Lord or Lady of the House.
  In the case of a legal dispute a noble family’s Deed can be consulted and its record is regarded as final and binding. Only the current High Lord or Lady can make amendments to a Deed, and that has led to some interesting legal cases in those times when the High Lord is not quite of sound mind. The infamous case of the Agundar family, whose High Lord died without declaring an heir, for example. After consulting the Deed, it was found that the High Lord had penned in a clause that whosoever wished to succeed him had to slaughter all other claimants in mortal combat. This of course preceded, and was the direct cause for, the outlawing of dueling within the city.
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