Phandalin is a small town of about 50 to 60 buildings. Many of the buildings are built on the foundations of old ruins and other nearby ruins suggest that this town used to be much larger. Over 500 years ago a group of Orcs swept through the North destroying all in their path including Old Phandalin. Today the town is rebuilding itself with a new batch of prospectors hoping to strike it rich in the nearby Sword Mountains.
Lately, the town has been having trouble as a group of thugs calling themselves the Red Brands have been hassling businesses and townsfolk alike.