Loudwater sits where the rivers Delimbiyr and Grayflow flow together. Just to the Northwest lie the Star Mounts, heavily forested mountains. To the North lies the High Forest, while to the South lies the High Moor.
The town serves as a rest-stop for travelers between East and West, many of which find their way to the Green Tankard Tavern before moving on. Safely behind a foaming mug of ale, tales are told of goblins in the Southwoods, of the serpent folk of Najara, and of ancient ruined kingdoms doting the surrounding coutnryside.
Loudwater feels like a frontier town; though it was once much larger and richer, it has deteriorated during the last 100 years of chaos and turmoil. Only recently has trade begun to pick up again, and the inhabitants of Loudwater look to the future with hope once more.
Politically as well as geographically Loudwater sits just outside the relative calm and orderly confederation of Luruar and benefits from the trade between Luruar and the Zhentarim lands to the north-east. Luruar is a peaceful confederation of elves, humans, and dwarves, while the Zhentarim are a decidedly more sinister lot who use their trade and diplomacy to conquer as surely as any army. It is noteworthy the Zhentarim do not represent a nation, but rather a powerful group of evil-worshippers who use their influence to in effect act as a nation. Despite this they are a clandestine group and in public appear to be mercenaries and agents unaffiliated with anything much.