Lyndon

The City of Faith is the de facto capital of the Confederacy. It's where the Confederate Council is located and conducts all meetings and business. It is also a nexus of faith. The City itself is run by the high clerics of the different temples, and faith-based and clerical services are their main export. Magical healing rituals, curse removal, you name it, it all happens in Lyndon. The Faithguard also operates primarily out of this city, enforcing what gods are allowed to be worshipped throughout the Confederation and snuffing out illegal worship wherever it may pop up. Within the walls of the city, only divine magic sanctioned by one of the nine legal deities is allowed. Arcane magic is heavily frowned upon, as it is considered the purview of the Chose of Mystra.
There are nine districts, each dedicated to one of the nine legal deities in the Confederation. Eight slices of the city circle the ninth central district:

Archdragon's Perch, for Bahamut

The high priest of Bahamut is a silver dragon named Sthryxios. He is in disguise as a human male named Silas. The Perch also contains the barracks of the Faithguard. The Platinum Sanctuary is the main temple.

Tinker's Respite, for Erathis

The only tinkerer's guild in all of the Confederation resides here, and is lead by Erathis' head priestess: the High Tinker Galamara, an aging half-orc. The main temple is called the Crown of Artifice.

The Quarter of Comprehension, for Ioun

Ioun's Vault is a large library of knowledge, approved by the Faithguard. High Curator Dalora Voss, high Elf, leads the Vault. The Vault is the only library more extensive than the archives of the Institute, as they are given a free pass to store knowledge on forbidden faiths under Ioun's blessing.

The Barrows, for Kelemvor

Kelemvor's temple is called Soulhome, and is led by a weirdly young and chipper halfling called Soulwarden Yoryn Tenpenny. He is related to archmage Belladonna Tenpenny.

Hammer's End, for Moradin

The Allforge is lead by Declan Stoneborne, a hill dwarf. He used to be the apprentice of Khargas Trueblood. A statue of Khargas stands next to the imagery of Moradin himself near the entrance of the Allforge.

Aurora's Reach, for Pelor

The Chantry of the Dawn is led by the Dawn Marshal. They are a priest of indeterminate gender, called Erin. They have two underpriests, Murray and Elia, both half-elves, who are capable of divine magic. Based near the Chantry is the Abbey of the Sun Soul, where monks master Pelor's radiance into their martial arts.

The Abundant Terrace, for Sune

Sune's main temple is known as the Abbey of Unity. Sune's nuns are led by Sister Diara, a kindly Gnome woman. The Abundant Terrace has many taverns and inns, with legalised prostitution as a large part of the culture there. Safe and open promiscuity is an important form of Sune's worship.

The Lunar Spires, for Selûne

The House of the Moon is a shimmering marble-and-glass structure. The Moonspeaker leads them. She is an elf who reportedly is over a thousand years old, but not much is known about her. She never personally sits the Confederate Council. The second largest spire in this district are the Halls of Convocation, where the Confederate Council meets.

The Sanctorum Arcanum, for Mystra (Center district)

The entire central district functions as a large temple to Mystra. Only devout followers are allowed inside. Mother Alyssa leads the church to Mystra. There are chapel-libraries for the Keepers and the Shieldbearers, as well as sleeping quarters and research halls. The Sanctorum Arcanum is the only district where no businesses of any type are set, as the entire district is essentially a bastion for Mystra.