Ruby Falls is a small village located between the Kron Hills and the Gnarley Forest. Although the town is mostly made up of gnomes, there is a good deal of humans and dwarves as well. The town is known for its copper mine, lumber and friendly people. Ruby Falls welcomes all strangers of all races. Normally the mayor is out of town building relations with other towns. When the mayor is gone, Daviot the half-orc leads the town in its day-to-day activities. The main attraction to this humble town is not the fine ale and beautiful gnomish women. Nay, it is the tale of Ruby Falls. The town’s only landmark is a waterfall on the northern edge of the village. This is the tale that brings the travelers to the remote village.
In the year 567 CY, or so the story goes, the gnomish villages in the Kron Hills were the targets of some unknown evil. The evil, a hideous creature of unstoppable power, would steal into the homes of the villager and kidnap their children, leaving the grieving parents behind. Any who got in the way were killed. With each visit, the evil grew stronger.
The Gnomish clerics met together in a village on the eastern side of the Kron Hills. After prayer and fasting, they petitioned their gods for help and intercession. On the fifth day, a vision appeared to the youngest gnome cleric at the gathering. He saw the Kron Hills before him. One of the hills southwest of the village raised itself up on what appeared to be four horse’s legs. The hill became real bright, reflecting the evening sun as it came closer and closer to the village. On the right side of the hill was what appeared to be a flickering streak of silver lightning, as if the hill were waving a sword. As it got closer to the village, another hill, reddish-brown in color, appeared in the village and started to destroy buildings and crops, killing some of the Gnomish inhabitants. The hill opened up and swallowed two children, and then when it noticed the shining hill, it ran east. The reddish-brown hill stopped at a waterfall that tumbles from a stream that borders the Kron Hills and the Gnarley Forest, and the shining hill fought the reddish-brown hill. With each boulder the reddish-brown hill threw at the shining hill, the shining hill broke them to pieces. Finally, the shining hill charged the reddish-brown hill and pushed it into the waterfall. The falls turned red, the reddish-brown hill being destroyed and the shining hill turning into silt.
The next day, the evil attacked the village. After it destroyed several more buildings and a couple of fields of crops, it attacked the small contingent of militia that had gathered to fight it. Many of the militia died in the fight, but the evil was severed wounded. Looking to flee, it grabbed two nearby children that had gathered to watch the conflict.
From out of the southwest a tall gnome, wearing gleaming full plate armor and riding a huge golden wolverine, rode into the village. The armor was emblazoned with three rubies on the breast of the armor. In both hands, the gnome bore a great double-bladed axe. The evil and this unknown warrior stopped at the base of a waterfall that issued forth from a stream that flowed from between the Kron Hills and the Gnarley Forest. Casting aside the children, the evil attacked the gnome with the full fury of its might, but the warrior parried and deflected each attack.
Finally, the warrior and his steed charged the evil, driving it back into the sheet of the waterfall. As the evil stumbled against the onslaught, the gnome swung his axe and cut deeply into the chest of the evil. Knowing that his reign of terror was over, the evil pulled the gnome and his steed into the waterfall with it. As he did, the flow of water turned deep red. Though the body of the gnome warrior and his steed were found, the evil was not. They were buried in the cave behind the waterfall, as a testimony to their stand and the site on which they fell.
Since that day, the evil has been gone from the land. Occasionally, or so the tale goes, on certain bright and clear sunset evenings by the waterfalls, there appears to be a figure in shining armor on a huge wolverine in the waters of the waterfall. They appear to turn and ride into the falls, and once again the falls sparkle with what appear to be drops of blood. It is also at this time that some say that a ruby will appear in the hand of those that reach into the falls to shake the hand of the warrior that saved the gnome villages from the evil.
While some scholars attribute the evil to the depredations of the first rising of the Temple of Elemental Evil, others are not so sure.