The dwarf raises an eyebrow at the question. He answers you, "You're in Stilben..." He then continues, "Along the Lucidian Coast? Surrounded by the K'Tawl Bay and the K'Tawl Swamp? Near the Summit Peaks? Ya follow the Silvercut Roadway from here to Westruun? In the country of Tal'Dorei?" As he mentions those clarifications, he seems to study your face for any sign of recognition in regards to those names. 

Unfortunately, none of those names were ringing any bells...