Daggerford

Daggerford is a town whose claim to fame is being the largest town between Baldur's Gate and Waterdeep. Lying on the north bank of the Delimbiyr River, it was in an ideal location to be a changeover location for the ship and carvan traffic passing through the town. 
Just south of town is Tyndal's Bridge. Tyndal was the first duke of Daggerford, earning his fame when he defended the bridge from attacking lizardfolk, himself armed with only a dagger. This event gave Daggerford its name, as well as its crest, that of a silver dagger, dripping blood, on a field of blue. Tyndal would go on to marry the local ruler's daughter when he grew older and after naming himself duke he would being the construction of the town of Daggerford atop the ruins of an ancient castle.
The town proper is surrounded by both a city wall and a moat, with entrances at the gates of the city, the Farmer's Gate in the north, the River Gate in the south, and the Caravan Gate to the west. Atop the hill inside the city wall is the ducal castle, older than the town itself and with its own wall. Despite its role as a stop for all manners of trade, Daggerford is primarily a farming community, and most of the town's population lives on the outlying farmlands.  
Today Daggerford is ruled by Duchess Morwen Daggerford as well as the Council of Guilds. The town's duke uses to have absolute authority, but in the past century Daggerford has also incorporated a city council consisting of the leading guildmasters in town. Politically, Daggerford is a member of the Lords' Alliance and an ally of Waterdeep, although Daggerford once claimed Waterdeep to be a rival to itself. Waterdeep did not entertain this delusion of grandeur. The town maintains its own militia to ward off threats, and has been known to hire talented adventures as well when times are dire. The militia has experience fighting off nearby goblins and orcs who grew too ambitious.