Once a small but prosperous village on the northwestern fringe of Marewood Forest, Horseshoe's fortunes — and population — gradually dwindled after the nearby river changed course, reducing the river bend to a stagnant oxbow lake and cutting the town off from boat travel to the nearby city of Belbury. Most residents moved either to Belbury or to the newer village of East Horseshoe a few miles downriver.
The souls of those who once lived in Horseshoe often seem drawn to return to it after death, and their spirits are known to haunt many of the town's empty and decaying buildings.
