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Shrouded Island/Lore
In the days during the First City, a great noble rose through the aristocratic ranks to become the wealthiest man the ancient world had known. His dealings, however, were not altogether wholesome and his avaricious behavior soon led him into pacts that would catch up with him. There were no pacts with Tarhyl or any such nonsense, rather he did business with a particular necromancer, famous in some occult circles, who later caused his downfall.
Together the men made much money off their accounting of "dead souls" which allowed them to siphon tax revenue from the First City. But when the two were found out, the noble betrayed the necromancer to the authorities. Henceforward the necromancer detested his former partner, whom he considered more vile and despicable than himself. Shortly after constructing his pleasure palace on a private island off the coast of the Mistwoods, the necromancer began his revenge on the lord of the estate. It is still unknown today how this necromancer gathered enough corpses and enough power to subjugate the entire estate, but several loreseekers have postulated that he enlisted the help of a power far greater than himself.
Today the island is still cursed by this necromancer's shroud-like enchantment, which bewitches the land and its undead inhabitants.