Low Estate/Setting

Bresella

Bresella is a large city on the edge of a river. This led originally to the marshes around the city (since mostly drained), but also caused Bresella to be well-situated along a major trade route, leading to early wealth for the city. This was supplemented with a booming industry in wool, dyes, and fabrics. Additionally, the early rulers of the city saw the value of research and education, and established a large university for philosophical, scientific, and magical research (it is less well-funded these days, but still an attraction for scholars and experimenters).

Magic

Magic exists in the world and there is general agreement on this fact, but beyond that things become fuzzier. For instance, there is disagreement over whether magic is inherently chaotic and irreproducible, or whether seeming inconsistency is merely a matter of not yet understanding magical substances and laws well enough. Practitioners have adopted things as diverse as past-life regression via hypnosis, transmutation of elements using the proper additional substances, and predicting the future by tracking subtle alignments of the stars, and all have roughly the same effectiveness.

Magical creatures are rare, but the very rich may have a tiny pet drake and those who wander in the woods have occasionally seen misshaped things that can't quite be human. Furthermore, it is generally accepted that demons exist and some people make deals with them -- but there is little agreement on what a demon exactly is, where they comes from, and whether they are all of one species or of many different kinds (to say nothing of how to make a deal with one and come out the winner in the end).

Magical items exist but in general nobody knows how to make creations with long-term stability; they require constant tinkering and upkeep.