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The Arcaunac Valley is a hostile valley of beasts, monstrosities, giants, and other threats that lies in mid-southern Falderheim, running northeast across the kingdom. As is tradition among the Warring Families, the valley is a lawless land that none are allowed to lay claim to, and is used a a proving grounds for the young and reckless. Criminals and the dishonored are often sent to Arcaunac as a trial of penance, and are only allowed to return to society after claiming the head of a beast of great power. Various wild clans, bandits, and raiders make their homes in the mountains, eager to pick off those who underestimate its hostility.

In years past, Sanaris attempted to have Falderheim reign in the chaos of the Arcaunac, as bandits were raiding settlements in Sanaris and subsequently retreating to the valley, where the Falderians would not pursue them under any treaty. Ultimately, these attempts at diplomacy went nowhere, as the Sanarians were simply invited to pursue the rogues in the valley themselves, which they refused to do.