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Velatosse is from the small village of Phaer where she lived with her two sons, Iwelien and Nelulin until the mysterious plague hit. Her son, Iwelien was one of the first to be affected and sent into quarantine in the mines by the town's alchemist, Hendil. She has become deeply depressed since then.
In a conversation overheard between her and Captain Netanwe, Velatosse originally agreed with bringing the mercenaries in to help keep order, but has since disproved of how Hendil and the mercenaries are handling the situation.
When the Vestige arrives in Phear, she has become very distrustful of Hendil and Amuur and believes there's something more to the plague then what they are letting on. She implores the Vestige to search Hendil's home to discover what he's hiding. After finding Hendil's journal and giving it to her, she asks one to infiltrate the mine and find out the truth of what is going on. After sneaking into the mine, they discover that the plague is being caused by Tancano, Hendil's son, who had been turned into a vampire. And the "plague" was really people being turned into thralls after being fed upon.
After Amuur and Tancano are defeated and Hendil surrenders, Velatosse learns that Iwelien had already been fed on, but Nelulin had not been fed on yet. In her grief over the loss of Iwelien, she demands to have Hendil handed over to her, which would result in his death. The Vestige can convince her, however, to let Captain Netanwe arrest him.