“Lake Mirror is said to be drops of Vornir tears, thus one might see other things but facial reflection when looking down -down into a deep that has more than lurking for lifefilled eyes.”
The lake was actually formed far earlier than the legend, but its such a great story. Som of the Other races have told me that its forming goes back to when the first Mana was discovered leaking into our World. Lake Mirror was but one spot where it touched, Junnatu Caves another.
These days its merely left by itself with very few lowborn using its resources as they see fit, due to the kindness of the de facto owner, Deepminded.
Lake Mirror is located in the south of Fogwald where the foothills flattens and a natural trade route between all the southern Countries of Midgard opens up to . Goods flow out to Udring, in to and up through the narrow pass leading into and the other northern Midgard Countries.
Fogwald is governed by 40. Chiefs of various Human origin, but the woods are inhabited by several Other races, making it hard for the rash Chiefs to gain the upper hand. Thus, the lake and its small island Kistal is governed by Deepminded.