Sky town is as it was named, a town suspended in the sky by great magical cloudstones, gathered and chained together long ago by groups of goblins and dwarves who wished to take advantage of the opportunities they provide. The dwarves control the cloudstone mines, where cloudstone is harvested and fashioned into all kinds of artifacts used by all kinds of folk, both for their ability to float and support some weight, and for their ability to gather water from the air, where it condenses into the mists that give the cloudstones their name.
Goblins, on the other hand, take advantage of the water that the cloudstones gather, implementing supply chains that move fresh clean water out to people in need, making their near infinite supply into a source of income and providing much needed supplies to those that can pay.
The dwarves and goblins of Skytown, therefore, do not get along very handily. Goblins, who wish to stockpile the cloudstone for water production, are appalled at the dwarves, who seem to want to break it up into little chunks and distribute it across the land so that nobody can benefit from it. The Dwarves, on the other hand, resent the goblins for not thinking beyond their wallets, and recognizing the great implications of putting such a versatile material into the hands of, say, a great inventor like Heironomous H. Topot.
Skytown is, consequently, the town where the infamous Airship inventor and last remaining giff Heironomous H. Topot resides. He is constantly updating his designs, and, with the help of both the dwarves and the goblins, is creating a technology he says will make every other method of transportation short of teleportation a thing of the past.