Sanctuary was the peaceful nation, guided by Sir Lucian, located on the large island to the east of the mainland.
Lord Lucian, twisting lord of Bitter Peak, took to exploring the lands to the east, and happened upon a peaceful tribe of natives. While he studied them for clues as to how and why they were so peaceful, they were beset upon an army of undead. He stepped forward and helped repel the attack, organizing the defense. After the battle the small city was fortified to withstand future assaults.
Taking charge against the undead and offering them no quarter, while offering peace and sanctuary to all others, the natives gladly accepted the rulership of the paladin.
After reestablishing contact with his homeland, a formal alliance between Bitter Peak and Sanctuary was signed; Sanctuary would accept those wishing to escape the mayhem spread by the mercenaries' exploits, and the mercenaries would leave Sanctuary untouched.
Being a land dedicated to preserving life, many healers could be found there, and economy in Sanctuary was thriving.