Khaz Yurridduum
Khaz Yurridduum, dwarven for the "Clan Fort which is the Home of the Runecrafters", is the clanhold capital for Clan Yurirsson of the Clans of Magnus. The city is a metropolis, and has a highly insular population, mostly of Dwarves (and mostly of its own clan). The fortress was established after Yurir Magnussun was gifted the first runes by his father, Magnus Allfather, so that the dwarven god of Runecrafting could study the runes and further develop the art into the advanced trade it is today. The city is therefore strongly associated in dwarven culture with the practices of runecrafting and wizardry. This association has made it wealthy (and contributed to the human association with dwarves and magic items) as it is located near the western mouth of the Pass of the Tall Folk.
Geography
Khaz Yurridduum has three surface gatehouses (towers, in the dwarven parlance)). These three towers form an equilateral triangle when viewed from above, though on the ground this is not immediately obvious, as they are at different altitudes and the roads between them are winding.
Internally, the city is stacked like a layer cake, with concentric, ring-like balconies opening onto a central shaft down into the Forge of Wills. Part industrial foundry, part temple, the glow of the fires and molten metals lights the mountainside at night through various small shafts.
Economy
Dwarven economies tend to be highly static. Dwarves do not birth often and take long to mature, and apart from war and disease, suffer few pressures to shrink their cities. Yurridduum is, like all great dwarven fortresses, heavily reliant on imported foodstuffs, as well as other products of agrictulure and forestry. Some of this comes from the clanhold, but much, much indeed, comes from trade along the Pass of the Tall Folk.
In particular, while dwarves have other exotic materials involved in Runecrafting, some of which they export (like Runic Dykem, an essential component in Runecrafting, produced only at this one city), these materials are not heavily used in other worldly systems of magic like Ars Magica. Worse, even some dwarven craft requires Arcwhale Oil to produce, and the dwarves (much less those at Yurridduum) have no natural source, trading heavily with Bastonia for it.
These factors combine to make a materially-wealthy city which is rich in gold but poor in its own upkeep, meaning much of that gold goes out of the gates as quickly as it flows in.
Politics
Yurridduum is the seat of power for Clan Yurirsson, who are a powerful clan by virtue of its holding. Not only are they considered the pre-eminent experts on Runecrafting and enriched by trade with Bastonia, but Khaz Yurridduum itself controls access to the Pass of the Tall Folk, meaning they have the ability to cut off trade with Bastonia via the pass if they so desired.
Fortunately for the Clans of Magnus, the Kings and Thanes of Clan Yurirsson tend toward wisdom. The clan has held the office of High King on multiple occasions, and the general interest of the clan is better served by being magnanimous. At worst, they hold the higher secrets of Runecrafting close to their chests, allowing only members of the clan to study at the highest levels. At the best of times, they are fonts of knowledge, enriching all of the Dwarven Kingdoms with their craftsmanship and expertise.