Dragons Atoll is the home of the Dragon newts, which is the fledgling state of Dragons. The location of the Atoll is not exactly known, for it is shrouded in fog year around, and many a ship has broken up on the jagged reefs surrounding the islands.

Dragon City is the only city on the atoll, and is home to many people not just Dragon newts. There is a great college here that is renowned for its teaching of History and Magic. The cities population is unknown.

The other islands are inhabitated by the Dragon riders. These men and women breed a special kind of dragon that can be ridden. They're honesty and loyalty to duty has earned them a great reputation worldwide. The dragon riders can be hired to act as protectors to diplomats.