Dunsburrow is situated at the foot of the Karag Mountains where it is built up against an imposing cliff wall. The cliffs provide natural protection to the north, and a dwarf-made wall provides protection to the remaining points of the compass. Castle Dunsburrow is buit at the northern most point of the city, against the very cliff walls. The castle towers over the city, and is visible from all districts. Only one road leads to the city, a legacy of the towns history as a trading outpost.
Trade with the dwarves proved to be of great benefit to the small outpost, which quickly grew to a thriving city. Merchants and artists travelled from distant lands to gather at Dunsburrow which had become known as a centre of learning and trade. However, following the defeat of the Turqs by the Orcs, and an immense earthquake, which destroyed the dwarven empire, Dunsburrow found itself gradually more isolated and abandoned. The town began to shrink as trade routes were diverted, and intellectuals and artist moved on.
Nowadays, Dunsburrow is but a shadow of its former self, with many of the city districts entirely abandoned and deserted.