Cauldron City is the capitol city of Alterra. It is so named because it is situated in a massive caldera atop a long-inactive volcano in the Dragonspine Mountains, meaning it is shaped more or less like a giant bowl. In the very center of the city is a perfectly circular fresh-water lake formed from rainfall collecting in the center of the bowl. Although the climate of the city is very cold (being high in the mountains), the water of the lake is warm; the magma of the ancient volcano still warms the ground beneath the lake. The city is structured in rings around the lake, with the poorest of the citizens living in the center, and the richer citizens living along the edges of the caldera. The merchant district consists of a single wide lane that wraps the full circle of the city, with dozens if not hundreds of shops and restaurants dotting its path. Crater Lake has been stocked with a multitude of species of tropical fish that thrive in the warm nutrient rich environment of the lake's waters. Hence, the main cuisine in Cauldron is actually seafood, despite being thousands of feet above sea level. Regardless, the cost of living is fairly high in the city due to the costs associated with importing many of the other necessities of a large city. The people there are generally happy, and take solace in the fact that the walls of Cauldron have never been breached - it is an exceedingly safe place to live, from the standpoint of war. However, political unrest in the city, and high rates of crime in the poorer Rings can lead to bouts of dissatisfaction among the citizens.
Each year, Cauldron City celebrates the Flood Festival, attracting travelers from around the world in the form of tourists and merchants alike.
See note Legend of the Sleeping Dragon for a common local legend.