I was thinking more like a viking-esque dwarven city, which could still work, they've actually managed to grow fairly poor over the years, having to rely on fishing and mining rather than dragon slaying, since dragons are few and far between. Doesn't mean there couldn't be knights though. Competition!

Dark, I'm thinking there should be a Lore/Region sheet as well as CS something along the lines of:

Name of Region: Blargghh
Affiliated Races: (Dwarves, Humans, Elves)
Significant figures: (King, Queen, Generals, Heroes)
Significant Organisations: (Dragon Slayers of Death, Knights of Ni! Magi of The Circle)
Number of Cities: (If more than one)
Economy: (What makes the people stay here, Fishing, Dragon-slaying, Magic Wells?)
Dieties: (Do the people have a favorite god or more than one, tell us whom and why)
History: (What has happened to make this place so great or not so)
Other: (Anything else we should know?)