The city-state of Daggerfall is located at the southern end of the province of High Rock. It takes its place on the very cape of a huge peninsula separating Iliac Bay from the Eltheric Ocean. This position has ensured Daggerfall's success in trade in early and middle First Era.
North to Daggerfall lies Ilessan Hills. Daggerfall is bordered with Tulune, Glenpoint, and Shalgora. However, it's most known for conflicts with such Iliac Bay cities as Orsinium, Wayrest, and Sentinel. South to Daggerfall lies little island of Betony which caused a great war during the Third Era.
Archaeological evidence suggests that some form of human settlement had existed in the area of the Daggerfall at least a thousand years before the recorded history. This suggests that what is now known as the city-state of Daggerfall started as a settlement of Nedes.
The first recorded use of the name "Daggerfall" was made 1E 264, when the north half of the Iliac Bay, the current province of High Rock, was conquered by invading Nords, who brought a rough sort of civilization with them. The Book of Life, performed by the Nord conquerors, suggest that Daggerfall had a population of exactly 216 people by the time.
Daggerfall thrived during the years of the Nordic occupancy. However in 1E 369, the Skyrim engaged in the War of Succession and Nords lost their grip over High Rock. The Iliac Bay had become strategically important, and the Daggerfall began to expand military.
Daggerfall took part in the Direnni conflicts against the Alessian Order. Raven Direnni, the enchantress, whose magic helped to secure the final victory over the Alessians in the Glenumbria Moors, was one of the first people to occupy the Castle Daggerfall.
In 1E 609, King Thagore of Daggerfall defeated the army of Glenpoint. This allowed the Daggerfall to become the preeminent economic, cultural, and military force in southern High Rock. A position the kingdom has precariously kept ever since.
During the war in 1E 973, an army was lead to Orsinium by the King Joile. He, however, decided that this was a perfect opportunity to strike his temporal allies, Sentinel, unprepared. In the Battle of Bankorai Pass in the Wrothgarian Mountains King Joile met an unexpected resistance. His army was crushed by a band of Maidens of the Spirit Blade. During the battle Joile was killed by a second level Ansei, Makela Leki.
The fall of Orsinium made the river route to the Bay much more accessible, thus the tiny village of Wayrest started to grow, eventually becoming the master of the Illiac Bay trade. Daggerfall's monopoly over the Illiac Bay came to an end.
Second Era was a tapestry of wars, insurrections, and plagues. Daggerfall, Sentinel, and Wayrest continued to expand and improve their military and economic positions in the Bay. Daggerfall and Wayrest would transpose positions as major trading center of the Bay, and Daggerfall and Sentinel likewise bandied over which was the superior military power. 
Points of InterestEdit
Shops, Guilds, Libraries, etc in Daggerfall City:
- Mordard's Spices (Alchemists)
- The Emperor's Potion (Alchemists)
- Vintage Elixirs (Alchemists)
- Vintage Smith (Armorer)
- Daggerfall Mail (Armorer)
- Theodyn's General Smithy (Armorer)
- Daggerfall Metalworks (Armorer)
- Bank of Daggerfall x3 (Bank)
- The King's Books (Bookstore)
- Bargain Bookstore (Bookstore)
- The Superior Bookstore (Bookstore)
- The Adventurer's Bookstore (Bookstore)
- Daggerfall's Best Tailoring (Clothing Shop)
- Lady Andywyr's Jewelry Shop (Gem Shop)
- The Odd Bijoutry (Gem Shop)
- The Emperor's Jewelers (Gem Shop)
- The Odd Blade (Weapon Shop)
- The Elder Scrolls: Arena (First appearance)
- The Elder Scrolls II: Daggerfall
- The Elder Scrolls III: Morrowind (Mentioned only)
- The Elder Scrolls IV: Oblivion (Mentioned only)
- The Elder Scrolls V: Skyrim (Mentioned only)
- The Elder Scrolls Online