Never Far from the Queen

Speak to Rowan, the rabblerouser near the gate, to learn about city districts and The Dozens (a faction).

Speak to Edér about The Dozens.

Cross the canal and enter the Goose and Fox. In the back room, find a level 3 locked chest containing the Bartender's Ring.

In the main bar area, speak to Kaenra, who is drinking alone. She is worried about her fiancé Penrisc, who has been acting strangely since getting involved with "svef". Agree to talk to him and she will ask you to return her engagement ring to him, initiating the His Old Self sidequest.

Upstairs in the Goose and Fox, you will find a party of adventurers. There are three locked chests in the rooms for XP. Speak to Bishop at the bar to rest or shop. You can buy the Yellow Lab here.

Head west towards the Brackenbury exit. Next to a building door, you'll find a boy named Gordy. He claims to know where people hide things and wants a dagger made of March steel. Agree to get it for him to initiate Something Secret.

Go to the Marketplace (northeast of the Goose and Fox). Pelegun sells traps, Lora sells rings, scrolls, potions, and crafting ingredients. Narmer sells cooking ingredients, including rare Dragon Meat and Dragon Eggs. Igrun sells various items, including the March steel dagger you need.

Ask Igrun about the dagger. He sold it to a group of adventurers in the Goose and Fox. You can negotiate a discount by pointing out that only the Crucible Knights have access to March steel.

Visit Admeth's Den Expedition Hall. Speak to Wenan in front of the map table and ask about work. He will send you to Osric, who is training recruits at the back of the hall.

Speak to Osric. He was formerly a Knight of the Crucible and wants you to retrieve his family heirloom armor (a breastplate) without him having to ask for it. Agree to help him to initiate the Rogue Knight faction quest. There are three factions in Defiance Bay: The Dozens, The Crucible Knights, and House Doemenel. Each offers two faction quests. The first quest has no obligations, but the second locks you out of the other two factions.

Go through the door on the right in the Expedition Hall. You can speak to Senild, the Dozens' arms merchant, but she won't sell to you yet. Continue to the office to find two locked chests (level 4 and 5).

Head back out. Purnisc's House is north of the Marketplace. You can find a Rope and Grappling Hook in a barrel next to it.

Enter Purnisc's House, past the "svef" addicts. Find Purnisc in a side room.

Give him Kaenra's ring. He won't recognize it. Select "How dare you hit your own fiancée!" followed by "Something's not right here...". "Purnisc" will reveal himself as a Wizard named Nyrid and attack with his guards.

After defeating Nyrid, if you have built the Dungeons at your stronghold, you can take him prisoner. Otherwise, he will likely escape, and you will lose access to anything he was carrying, including Nyrid's Grimoire.

In the corridor, kill another mercenary. Loot a level 4 locked chest. Head upstairs to the top room where you will find four tougher mercenaries. They drop Fine equipment and a Rusty Bronze Key.

The Rusty Bronze Key unlocks the other door in the room. Find the real Purnisc held prisoner in a side room.

Question Purnisc. He admits to dealing "svef" and that his problems stem from greed.

Back in the hallway, check the shelves for copper before leaving the house.

Return to Kaenra in the Goose and Fox and tell her about Purnisc. You can choose to urge her to forgive him or to dump him. She rewards you with the Unwavering Resolve amulet.

Go upstairs in the Goose and Fox to find the party of adventurers. Speak to Two-Tone Weaxel and ask about the March Steel dagger. Offer to buy it for 100cp. With Resolve 14 or Intellect 12, you can bargain him down to 50cp.

Return to Gordy to give him the dagger. If your Survival skill is not high enough, he may injure himself. His secret is that an actor hid something under a loose stone near the theatre.

Go to the theatre in the center of the district. Use scouting mode to find a hidden stash to the right of the stage containing an Oaken Scarab Figurine and some minor loot.

Head northwest across the bridge from the theatre. You will encounter an old adventurer named Dalton.