As much as O Silencio sounds like a story to scare naughty children, it is very much a real place. People disappear into the ether, never to be seen again. No one dares approach the fog that surrounds O Silencio, for fear they'll not come back.
Fairy villages don't usually take up a lot of space, seeing as fairy folk are quite tiny. They're often built in forests, on small clearings, or up a handful of tree trunks, or mushroom clusters, or even among the petals of particularly big flowers.