Located close to the shores of Lake Zarovich, the town of Vallaki seems like a safe haven against the evils of the Svalich Woods, if not Strahd himself. The town lies beyond the sight of Castle Ravenloft and doesn't, at first blush, seem as depressed (or oppressed) as the village of Barovia farther east. After some time, the Sunseekers see that Vallaki is mostly filled with false hope.
For years, the Baron nurtured his idea of 'All Will Be Well' in Vallaki. A couple of weeks after the Sunseekers arrived in town, Strahd's bride Anastrasya invaded the town with horde of undead warriors. St. Andral's Church was brutalized in the process. Many people died in the attack, including Anastrasya at Strahd's hand when she attempted to kill Ireena.
For the last few years, the Baron has mandated attendance from the entire town at weekly uplifting festivals. He believes that these festivals are instrumental in his on-going campaigns such as "Don't Say Strahd" and "Pray the Fear Away." Everyone in Vallaki, including visitors is required by law to assist with the festivals in some way and have a good attitude about it. The Sunseekers were present at the Festival of the Blazing Sun, where a massive wooden ball was intended to be set ablaze like the sun until it started raining. The guard Lars Kjurls let out a laugh and was dragged in the street by the Baron on his horse and later imprisoned.
This church is dedicated to the Morninglord and named after St. Andral, whose bones once rested under the altar. Father Lucien Petrovich used to oversee the church and did his best to raise spirits. These days, his grandson Franz has taken over for Lucien. The church runs an orphanage next door led by Claudia Belasco.
The Blue Water Inn is Vallaki's main gathering place for locals, especially at night. The innkeeper, Urwin Martikov, considers the inn a sanctuary from the evils of this land. His wife Danika runs the bar allowing her to keep an ear to the ground. The Sunseekers stayed here during their lengthy time in Vallaki.
Madame Genie is a small lady elderly lady who runs the local brothel on the older, cheaper side of town. Genie's ladies have kept her business going strong. Genie herself often hosts secret meetings for her patrons such as when Rictavio revealed himself to be Rudlph Van Ricten, famous monster hunter, to the Sunseekers.
People come and go from the mansion at all hours during the day. Guards bring criminals cited for 'malicious unhappiness.' Men and women arrive carrying bundles of supplies for weekly festivals and the Baronness hosts daily prayer circles with the poor. The Baron runs Vallaki from behind his desk with the help of his lieutenant Izek Strazni.
Wachterhaus is the second largest building in Vallaki as the Wachters come from a long line of nobles from before the war. The house's governess, Fiona Wachter, has been conspiring against the Baron in recent years with the help of her loyal servant Ernst Larnak. Elizana arranged for the Sunseekers to help Fiona take on the Baron before they escaped Barovia after the Feast of St. Andral.
The stockyard is a general store and facility where storage sheds can be rented. It is owned by a middle-aged couple, Gunther and Yelena Arasek. They sell goods for inflated prices. Rictavio and the Sunseekers keep their wagons in this area while they are in Vallaki.
Henrik Van Der Root was a mediocre carpenter and a troubled, lonely man. Profiting from the deaths of others and because of the ghastly nature of his handiwork, no one desired his company while he was alive. Anastrasya kept her vampire spawns in his shop and manipulated Henrik into stealing the bones of St. Andral so that her forces could freely attack Vallaki and the church.
Vallaki's macabre toy maker, Gadof Blinksy, calls himself a 'wizard of tiny wonders,' but he has been consumed by despair lately because no one seems to like him or want his toys. His fascination for eerie playthings causes most other locals to avoid him. The burgomaster enables Blinksy to stay in business by giving him a couple of gold pieces a month to make festival decorations.
Vallai's town square hosts the Baron's weekly festivals, the Vallaki market, and the Baron's display of pillories and stocks for those who upset him. This area is the most populated public space in all of Barovia.
There is a large Vistani camp outside of Vallaki. Unfortunately for the Vistani, they are not allowed within the walls of the city, but trading is common enough between the two settlements.