Eyrafell

A small settlement on the edge of the The Wild Mountains. The settlement lives off the healthy woods surrounding it by gathering timber for the lumber mill and also selling finely crafted woodwork from the pristine wood. Recently there were multiple attacks from packs of gnolls that came from deep withing the wild mountains. Heroes were recruited from the capital to bolster the young village's defence led by the local guard chief Nick. After a long week of fighting fires lit by gnolls and slaying them along with the demons that lead them the priest managed to close the portal in the eastern caves.
The town is a small place where everyone knows each other and they are suspicious of outsiders even if they happen to be adventurers that help them fight demons. There is a few notable buildings here as well. A large lumber mill by the river that stands for most of the village's economy. There is also a small tavern called "Spring" that serves a smalll collection of drinks to their patrons. The last important building would be the church dedicated to Mihrna. It is a large building in the middle of the village at the town square. The whole thing is built out of wood with beautiful busts and statues depicting the gods carved out of the wood. The roof has a large depiction of Yggdrasil and all of the worlds resting upon its mighty branches. 
Notable residents of this town is guard chief Nick, priest Henderson who closed the demonic portal, Hilldrun the enormous woman who cleaved gnolls and demons alike in half, and lastly a man who has recently started to live with Hilldrun. He calls himself Krami and leaves behind footprints that are far deeper than they should be, if you are perceptive enough to notice that.

"A small town funded by the capital to prove its ability" 

Art links: https://www.deviantart.com/watchtheskiies/art/A-Quiet-Place-Skyrim-798846772