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It consisted of three farms and an inn, and was located on the southern shore of Lake Ilinalta, just north of Falkreath town. A market was held here weekly.  The dragon, Vuljotnaak, was slain and buried nearby. 
- Granite Hill was originally intended to be in The Elder Scrolls V: Skyrim, but for some reason was excluded, similar to the town of Heljarchen. In the Creation Kit, it is possible to find "GraniteHillLocation", which is now simply a blank space on the southern shore of Lake Ilinalta.